Sounds like a question for the lawyers.

Based on a similar situation, I would say no. You don't own the land and upon your demise the house and land cannot be separated.

Even if the land/house will be left to MY grandchildren?

Our family had a similar situation. One relative wanted to build on the property and harvest some of the trees. Lawyers said they had to get releases from all the parties listed in the trust. Everyone concerned gave their ok.

IT all depends on what the Trust says one can do with the land. Also who the Trust benefits. You should consult a lawyer to see.

My opinion (worth what you paid for it), is that while it may not be totally impossible, you're going to have to be willing to do some extra leg work and put some legal fees/work into it IF you need to get a construction loan. I just can't see the average bank giving out a construction loan under this scenario, but what do I know.

People build houses in Hawaii with 100 year land leases. Perhaps this would be a way to handle it.

One of the issues in Hawaii is that some banks will not give you a mortgage that extends beyond the property lease period for leasehold property. Although many leases are expected to renew almost automatically, the bank still feels there is a risk of losing the property when the lease runs out.

Bruce

It's definitely possible, but a leasehold build is obviously more complicated than a fee simple ownership would be. With approval from the trust, your lawyer and banker should be able to work something out. Good luck; hope you keep the forum posted as to what you end up doing (and please,reveal what state you are in as real estate law is very state specific)