Land Lease Buildings for Living in New York City

 

Hi everyone welcome to the Bubba Officials we will Show your information destination for

 Living in New York City. This week we're going to talk about land lease buildings do you know what a land lease is a land lease building also known as a ground lease is a building.

 

That does not own the land it sits on someone else owns the land and charges rent there are approximately 100 land lease buildings in Manhattan with leases that run about 50 to 99 years compared to other apartments land for  leases are extremely attractive.

 

Because they're usually priced twenty percent below market value.  The caveat is a high monthly maintenance which goes towards the ground lease note that a portion of the ground lease fees are most likely not tax-deductible more importantly not all banks work with land leases due to the risks involve.

 

whether it's individual lending or financing for capital improvements the issue of resale is also a consideration in some instances the shareholders have gotten together to buy the land lease from the land owner this is great news except the building is up for a new assessment and in one case a tenant saw her new assessment exceed.

 

The value of her apartment and was forced to sell in another case the owner could decide not to renew the land lease. But talked to you real estate broker attorney and mortgage banker to assess your appetite for risk when it comes to land lease buildings that's it for this  show your information destiny for living in New York City have a great.