Business plan for building on someone else's property

Question

We've been living abroad for a couple of years and are moving back home. We've saved up some money and instead of just renting an apartment or buying a big house we are thinking of building a small home on someone else's property.

What would this setup be called and are there business plans or financial models for this type of investment? It has to be mutually beneficial.

Answer 1

The most obvious answer is "leasehold". You lease the land from them, then build the house on it. The lease is usually for a fixed period, perhaps 99 years.

Make sure you have a good lawyer to draw up the lease with the landowner, or it could all go horribly wrong.