Generally speaking, you should have no problems getting a mortgage in a building that sits on leased land. Here in New York City, some of the finest buildings are on leased land, whether they are cooperatives or condos like in Battery Park.
Generally speaking, if the lease on the land runs longer than the term of the mortgage, there shouldn't be any problems. Often these leases are for many years, such as a 99 year term. Best to get a copy of the lease, read the terms, calculate any rent increases during the term of the lease and find out the expiration date.
It's not the most common type of building, but it's common enough to finance.
Subscribe to:
Post Comments (Atom)
2 comments:
I am looking for a lender who will fund a mortgage for homes on leased land and for Manufactured Homes as part of a coop. Please let me know if you know of such a lender(s) Thx.
I can originate mortgages for coops and condos on leased land. That's not problem. Shoot me an email at jeffrey.x.loyd@chase.com
Post a Comment