Property prices are rising, particularly in large urban areas. To revive homeownership, the scheme introduced by former MP Jean-Luc Lagleize is based on a simple idea: separating the land from the building. In practical terms, you become the owner of the walls of your home, but you rent the land on which it is built. The goal? To reduce the cost for middle-income buyers.
How Does It Work in Practice?
Normally, purchasing a house includes the plot. Here, ownership is divided. A Community Land Trust (CLT), which is a non-profit organization, purchases and retains the land. For your part, you buy only the dwelling.
The two parties are linked by a Long-Term Ground Lease (LTGL), a contract that typically runs for a very long period, between 18 and 99 years. Since you do not pay for the land—which often represents nearly half the budget in highly sought-after areas—the purchase price of the property drops by 30 to 60%. In exchange for occupying the land, you pay a monthly fee to the CLT.
Who Is This Scheme For?
This arrangement primarily targets households caught between incomes too modest for the open market and the need to remain close to city centers. There are therefore eligibility conditions:
- The buyer’s income must not exceed certain thresholds, set by the government according to geographical area.
- The dwelling must be used as a primary residence.
The real trade-off comes at the time of resale. To prevent speculation, the resale price is capped. You will not make a large capital gain, because the objective is for the dwelling to remain affordable for the next buyer, who must also meet the same income requirements.
Landscaping and Fencing: What You Need to Know
A common question is: if the land does not belong to me, can I still landscape it? The answer is yes. The lease grants you a real right to the plot. You have full enjoyment of your garden. You can install a patio, plant trees, or fence it.
This is, in fact, an almost systematic step. At Districlos, we regularly assist these new homeowners in securing their outdoor space. Whether one owns the land or rents it through a CLT, installing rigid mesh fencing or a privacy screen remains the best solution for defining your space and preserving your privacy. Our ranges are well suited to these projects where optimizing the construction budget is often a priority.
A Different Financial Calculation
The immediate benefit is clear: the required deposit is lower and monthly payments decrease. Often added to this are tax benefits, such as a reduced VAT rate of 5.5% on new builds and, in certain municipalities, a reduction in property tax.
However, one must accept a change in philosophy. Inspired by Anglo-Saxon Community Land Trusts, this model is not designed for making a financial windfall. Above all, you are purchasing a secure right of use over the long term. This is the price to pay for living in the city or close suburbs without excessive debt, prioritizing the use of the dwelling rather than speculative investment.
Expert in fencing, gates, and outdoor landscaping since 2019.
Holds a Master’s degree in Digital Marketing – SEO, UX/UI.
View LinkedIn profile
