Buying a Leasehold Property on Navarre Beach: What Every Buyer Should Know

By Chantal Connolly, Levin Rinke Realty

Quick Take

✔ All privately owned residential properties on Navarre Beach are leasehold.

✔ Navarre Beach and mainland Navarre have different ownership structures.

✔ Many leasehold properties can be financed, depending on the property and lender.

✔ Residential and commercial lease agreements are different.

✔ Understanding leasehold can help you buy with confidence instead of uncertainty.

Understanding Leasehold Ownership

One of the first questions buyers ask me is:

"What exactly does leasehold mean?"

If you've never purchased leasehold property before, you're not alone. Most buyers haven't.

Fortunately, once it's explained in plain English, it becomes much easier to understand.

When you purchase a leasehold property on Navarre Beach, you purchase the home or condominium together with the seller's leasehold interest. While the land remains subject to the applicable ground lease, your leasehold interest is a valuable real property interest that can generally be bought, sold, inherited, and financed, subject to the lease terms and current lender requirements.

For most owners, daily life feels very similar to owning traditional real estate.

Why Is Navarre Beach Leasehold?

Many buyers assume leasehold is something new.

Actually, its history dates back nearly seventy years.

In 1956, the Santa Rosa Island Authority entered into a long-term master lease with Santa Rosa County covering the eastern portion of Santa Rosa Island—today's Navarre Beach. That agreement established the framework for developing the island and allowed Santa Rosa County to create residential, recreational, and commercial leasehold interests.

Although many people associate leasehold with 1969, that year became significant largely because development accelerated, additional plats and lease assignments were recorded, and the debate surrounding the creation of the Gulf Islands National Seashore brought renewed attention to Santa Rosa Island.

Understanding this history helps explain why Navarre Beach has a unique ownership structure today.

Navarre Beach vs. Navarre

This is one of the biggest points of confusion.

Navarre Beach is the barrier island.

All privately owned residential property on the island is leasehold.

Navarre, located on the mainland, is different.

Most homes there are owned in fee simple, meaning the owner owns both the home and the land.

Although people often use the names interchangeably, they represent two very different ownership structures.

Residential and Commercial Leaseholds

Not every leasehold agreement on Navarre Beach is the same.

Residential homes and condominiums are governed by residential lease agreements.

Commercial properties—including hotels, restaurants, marinas, and retail businesses—operate under different lease agreements with their own requirements, permitted uses, and development standards.

That is why it's important to review the specific lease that applies to the property you're purchasing.

Can Leasehold Property Be Financed?

Yes.

One of the biggest myths about leasehold property is that it cannot be financed.

In reality, many leasehold properties qualify for financing depending on the property, the lease terms, current lender guidelines, and the buyer's qualifications.

Financing may be available for:

• Primary residences
• Second homes
• Investment properties
• Some VA loans

One of the most important factors is working with a lender who understands leasehold transactions on Navarre Beach.

What Buyers Should Review Before Purchasing