Proprietary lease ... expiry

Yes.....beware....

See http://realestateqa.blogs.nytimes.com/tag/co-op-proprietary-lease/ etc.

Thanks ... am still unclear about what the cost for renewing the lease typically is?

The co-op will have to pay its lawyer. Problem is that these little legal-housekeeping things cost as much for a little co-op as for a big one.

Aside from the legal costs, is it typical for the land/building owner to raise the lease payments significantly?

Now your're talking about two different things.

The proprietary lease "is the compact that defines the rights and obligations of shareholders as tenants and the co-op corporation (acting through the board) as landlord." (Thanks, Sylvia.)

If someone other than the co-op corporation owns the land, then it's called a land-lease or ground-lease co-op. In that case, there's a lease between the landowner and the co-op corporation. The co-op can pay for its use of the land for x years either upfront, like Chelsea Enclave, or in yearly rent payments, like most other land-lease co-ops. The amount of the rent is usually reset periodically, as per the terms of the lease.

If your issue is with the proprietary lease, then no big deal. If it's a land-lease co-op, then it's a whole other story and needs to be looked into carefully before you buy into the co-op.

Thanks NWT. The case in point is one of a proprietary lease, I am told. So it is simply a matter of having a lawyer help extend the lease period? I wonder why they even bother to have a term end date that is 15 years away, rather than, let's say, 100 years.

The co-op could've been formed in 1975, with the proprietary lease at 50 years. The maximum would be 99 years, so seems as if it would've been simpler to set it at that.

Don't put your money in something that will make the value of the coop equal to zero at the expiration date. if the land is leased there is no guaranteed the the owner of the land will lease it again. At the expiration date you have to surrender your shares and any improvement you made to the apartment wull belong the the owner of the land. Can you imagine finishing paying the mortgage and now the expiration date is due and now you have nothing and have to move out. You just gave your money to the previous money and the bank. IT IS FRAUD AND SHOULD BE INCLUDED AS PART OF THE MORTGAGE FRAUD. THE FEDERAL GOVERNMENT HAS TO GET INVOLVED. OUR CHILDREN WILL BE INHERETING THE WIND WHILE OTHER PEOPLE MADE A LOT OF MONEY.