A ground lease, known in German law as Erbbaurecht, is typically agreed for periods of 60 to 99 years. The ground lessee pays an annual ground rent to the landowner, usually between 3 and 5% of the land value. Municipalities, churches, and foundations frequently use ground leases to retain permanent ownership of land while promoting affordable housing. For developers, the model offers the advantage of not requiring equity capital for land acquisition, reducing initial investment costs significantly. Upon expiry of the ground lease, the building reverts to the landowner, who must pay appropriate compensation to the former lessee. Ground leases are experiencing renewed interest as a tool for community land trust models.