Comment (February 21, 2009):
Jess,

I’m intrigued by this story, too. You might check out two blog posts, at http://lvtfan.typepad.com/ (check the cumulative posts page for
1. The Feoffees, their tenants, and the Ipswich public schools
2. Update on the Feoffees’ tenants in Ipswich, Massachusetts

But this isn’t the only place where homes on leased land are commanding a high price because the land rent is reasonably low. You might take a look at a delightful community in Wilmington called Arden — actually three communities — Arden, Ardencroft and Ardentown. People own their homes and pay land rent based on the relative values of the pieces of land they occupy. The aggregate of those payments is equal to what the county charges for the properties in total. What is interesting is that Arden’s homes are near the top of the local market.

It seems to me that the rules of the game haven’t changed; the Feoffees are simply starting to enforce the rules, and the tenants assumed they never would. The cottages on Little Neck are not fancy. They’re worth very little.

I disagree with your concept that the Feoffees should own and maintain the cottages. Individual ownership permits personalization. But rent must be paid, and, according to the original trust, it must be market-level rent.

Seems just to me. It also seems to me that collecting land rent on all of America’s land would be far superior to taxing our wages and our sales. We’d live in a far better country if we did things that way.

Follow-up Comment:
There are also leased-land homes in Dewey Beach, DE, just south of Rehoboth Beach. The leases end in the next 10 or 20 years, I understand. Cottages are still selling at pretty steep prices.