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Land lease and loan limitations

Started by shah
over 15 years ago
Posts: 100
Member since: Mar 2010
Discussion about
Hi all, I have heard if you buy in batter park city, since it is land leased and the lease has some timelines (like 25 years), the loan term that banks give matches the lease peroid. Let's say the lease term for battery park city is 25 years. Therefore, the loan term that banks give you is 25 years (instead of the typical 30 years). Has anybody else heard the same thing? If this information is correct, then if you buy now and sell in 10 yeasr, only 15 years of the lease is remained at the time of the selling. That means the loan term banks give to the buyer is 15 years. In the other word, the buyer has only 15 years to pay the loan back (instead of 30 years). Any help confirming this information is greatly appreciate.

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