Leased Land vs Fee Simple at Ocean Lakes

Thinking about buying or selling in Ocean Lakes and trying to choose between leased land and fee simple? You are not alone. This decision shapes your budget, financing options, insurance, and even what you can do to the home. In this guide, you will learn the key differences that matter in Surfside Beach and Horry County so you can move forward with confidence. Let’s dive in.

What fee simple means

With fee simple ownership, you buy the home and the land beneath it. You receive a recorded deed and hold the broadest rights to sell, finance, renovate, and use the property, subject to local zoning and any neighborhood covenants. Property taxes are assessed on both the land and the improvements by Horry County.

Title and recording

Your interest is recorded by deed, which shows you as the owner of the parcel and the dwelling. If an HOA applies, you will follow the community covenants, but there is no lot rent.

What leased land means

With leased land (a land-lease or park lot lease), you typically buy the structure but not the land. You sign a lease with the park that gives you the right to occupy a specific lot for a set term. Lease terms and park rules govern your rights, approvals, and any limits on alterations or additions.

Lease controls and title

Your title usually covers the manufactured home or park model as personal property or, in some cases, as real property if specific criteria are met. The lot remains under the park owner’s deed. The lease sets the lot-rent amount, renewal and termination rules, transfer policies, and rules on site improvements.

Key differences that impact your budget

Price and long-term value

Leased-land homes often sell for less up front than comparable fee-simple homes because you are not buying the land and you will pay ongoing lot rent. That lower entry price can appeal to vacation buyers and some investors, especially in a seasonal, tourism-driven market like Surfside Beach and Horry County. Resale can be more complex for leased-land homes, since buyers weigh lease terms, rent history, and park reputation.

Financing and mortgageability

Fee-simple homes usually qualify for standard mortgages if the home meets lender criteria. Conventional, FHA, VA, or USDA (when applicable) may be available. Homes on leased land face limited options. Many lenders will not make long-term real estate loans without land ownership. Buyers often rely on chattel loans for manufactured homes or specialty portfolio lenders. FHA Title I programs may apply in some cases, and VA financing generally requires land ownership and a permanent foundation.

Taxes and assessments

Fee-simple owners are taxed on land plus improvements, billed annually by Horry County to the owner of record. On leased land, the park owner typically pays property taxes on the land, while the homeowner can be taxed on the home as personal property or real property depending on how it is titled. Tax treatment varies, so verify details with the Horry County Assessor.

Insurance and flood exposure

Ocean Lakes sits in a coastal area where flood risk matters. If a property is in a Special Flood Hazard Area, lenders require flood insurance. For fee-simple homes, standard homeowners or dwelling policies apply, with premiums tied to elevation, construction, and flood zone. For homes on leased land, you will likely use manufactured or mobile home policies, and coverage terms and premiums can differ. Always request an elevation certificate and current premium quotes when comparing options.

Rules, rent, and daily living

Park and community rules

Leased-land homeowners must follow the park’s lease and rules. Review lease length, whether renewals are automatic, and the steps and reasons for nonrenewal or termination. Ask how lot rent is set, how often it increases, and whether increases are tied to a formula like CPI. Confirm policies on lease transfers, any park approval needed for a sale, and transfer fees. Understand restrictions on additions, colors, enclosures, and permanent attachments. Ask about amenity access and fees.

Maintenance and utilities

On leased lots, the park often controls roads, water, sewer, and common areas, while you handle the home’s maintenance. Lot modifications and structures might be limited. With fee-simple ownership, you control improvements subject to permits and local code.

Removal and lease-end risk

If a lease ends or is not renewed, you need to know your rights and responsibilities to remove the structure. Some leases require removal within a set time and may impose liens for unpaid rent or cleanup.

Ocean Lakes and Surfside Beach specifics

• Lease prevalence and policies: Ocean Lakes has historically operated as a resort campground with many leased sites. Lease lengths, transfer policies, and lot-rent amounts are set by Ocean Lakes management and can change. Always review the current lease and park documents.
• Flooding and elevation: Much of Surfside Beach is low lying. Request the FEMA Flood Insurance Rate Map designation and an elevation certificate for any lot you are considering. Premiums can vary widely based on zone and elevation.
• Short-term rental and occupancy: Ocean Lakes offers resort amenities and vacation rentals. There may be rules about short-term rentals, occupancy, and registrations. Check park documents and applicable local ordinances.
• Market comparables: Compare leased-land sales to other leased-land sales, and fee-simple to fee-simple. The buyer pools, financing, and price patterns differ.

Questions to ask Ocean Lakes management

• What is the current lease term, and are there renewal options?
• How is lot rent calculated, and how often has it increased in the past five years?
• What fees or approvals are required to transfer the lease when selling?
• What are the rules for additions, decks, enclosures, or color changes?
• If a lease ends, what are the deadlines and costs for removing the home?
• Which amenities are included with lot rent, and which are extra?
• Are there any pending capital improvements that could affect future lot rent?

Buyer and seller due-diligence checklists

If you are buying on leased land

• Full copy of the lot lease with all amendments.
• Lot-rent payment history and schedule of past increases.
• Written lease transfer policy, approval steps, and any transfer fees.
• Park rules, architectural restrictions, amenity agreements.
• Evidence of the park’s land ownership and any encumbrances.
• Utility confirmations for water and sewer, plus billing details.
• Recent tax statements for the home, and for the lot if applicable.
• Home insurance declarations and any park coverage for common areas.
• Elevation certificate, FEMA flood zone, and current flood premium.
• Permits and records for any repair, foundation, or site work.
• Estimated costs and requirements if removal is ever needed.
• Notes on capital projects, reserve funds, and any pending litigation.

If you are buying fee simple nearby

• Deed, legal description, and a recent survey or plat.
• Recent Horry County tax bills and assessment information.
• HOA covenants and budgets, if applicable.
• Flood zone, elevation certificate, and insurance details.
• Building permits and code-compliance documentation.

Which option fits your goals

There is no one-size-fits-all answer. Fee simple usually offers more long-term security, broader financing choices, and smoother resale. Leased land can deliver a lower purchase price and access to the Ocean Lakes lifestyle, with the tradeoff of ongoing lot rent and lease terms that shape your rights. Focus on total monthly cost, financing availability, flood and insurance realities, and how long you plan to hold the property.

Get local guidance you can trust

You do not have to sort this out alone. We help buyers and sellers across the Grand Strand weigh costs, review documents, and compare apples-to-apples comps in the Ocean Lakes area. If you are deciding between leased land and fee simple, we can connect you with lenders experienced in coastal manufactured homes, gather flood and insurance info, and structure a plan that matches your goals.

Ready to talk through your options at Ocean Lakes? Reach out to Jan and Dan Sitter | Coastal Beach Homes for friendly, expert guidance.

FAQs

Which is better at Ocean Lakes, leased land or fee simple?

• It depends on your goals; fee simple often provides more security, easier financing, and resale, while leased land offers lower entry price with ongoing lot rent and lease considerations.

Can I get a mortgage on a leased-land home in Ocean Lakes?

• Conventional mortgages generally require land ownership, so expect limited options and consider chattel or specialty lenders familiar with manufactured homes on leased lots.

What happens if the park does not renew my lease?

• Lease language controls; nonrenewal can require removal of the home within a set time and may involve costs or liens, so review the lease in full and clarify any questions before you buy.

How does flood insurance work at Ocean Lakes?

• If the lot is in a FEMA Special Flood Hazard Area, lenders will require flood insurance; premiums depend on zone and elevation, so request an elevation certificate and quotes early.

Do leased-land homes appreciate over time?

• Some do, but appreciation patterns differ from fee-simple homes and depend on lease terms, lot rent trends, and park stability; compare recent sales of similar ownership types.