What type of lease allows for separate ownership of the land and the buildings?

The correct choice is a ground lease. This type of lease is structured in a way that allows one party to lease land from another party while retaining ownership of the land. It typically involves a long-term arrangement where the tenant, often referred to as the lessee, builds and owns any structures or improvements on the leased land while the landowner retains ownership of the land itself.

Ground leases are common in commercial real estate and development, enabling developers to construct buildings or facilities without needing to purchase the underlying land outright. This arrangement can be advantageous for both parties; the landowner receives a steady stream of rental income without the burden of managing the property, while the tenant can invest in improvements and generate income from their use of the property.

In contrast, the other lease types listed do not facilitate the separate ownership of land and buildings. For example, percentage leases typically involve a retail space where the rent is based on a percentage of sales and do not separate ownership. Indexed leases adjust rent based on a certain index but also do not create separate ownership. Oil and gas leases specifically relate to the extraction of resources and do not involve the leasing of land for building purposes.