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06.03.20, 17:40 PM General Topics
12 replies
sorry for a dumb question but I don't know much about real estate. What does it mean if a coop building has a land lease until 2070? Bad idea to buy? I know coops are usually tricky and not sure what to look for. Also maintenance seems expensive at almost 2800. Thanks [ Reply | Watch | Flag ]
General Topics 06.03.20, 05:40 PM Flag
 

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Who ever owns the land leases it to building for a fee that they can raise. Most building own the land they sit on. I have seen several land lease buildings near churches that prob once had a school and now get income from the apartment building on their land [ Reply | More
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General Topics 06.03.20, 05:45 PM Flag
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Higher mortgage interest,, because it's riskier. [ Reply | More
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General Topics 06.03.20, 05:46 PM Flag
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Broker mom: A land-lease building means that the co-op doesn't own the land under its building. Instead, there is a rental agreement with the owner of the land. The devil is in the details of that rental agreement; what are the built-in resets? What happens when that agreement expires in 2070? Land leases sometimes make sense (a lot of Battery Park City I think is okay) but they're generally situations to avoid. [ Reply | More
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General Topics 06.03.20, 05:46 PM Flag
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op- thank you for this explanation. I saw a one bedroom in Beekman, in a nice building and very good price (under 400K) but again, very high maintenance and the land lease deal. [ Reply | More
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General Topics 06.03.20, 06:05 PM Flag
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it's priced well because of the land lease. [ Reply | More
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General Topics 06.03.20, 09:33 PM Flag
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agree, OP, think of Hong Kong - 1999 seemed so far away. 2070 might be in your family's life time. [ Reply | More
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General Topics 06.03.20, 06:17 PM Flag
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It's bad for resale, so you are probably looking at a discounted price taking the land lease into account. [ Reply | More
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General Topics 06.03.20, 05:47 PM Flag
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This! There are a few buildings in midtown east where the prices dropped big time to reflect the higher rent on the land lease. [ Reply | More
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General Topics 06.03.20, 06:01 PM Flag
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op- thank you everyone. We were thinking of buying for dd, who has been renting for 3 years. The price is good, but I guess we really need to look at details. [ Reply | More
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General Topics 06.03.20, 06:06 PM Flag
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Google the Excelsior, just one of the buildings where things got bad. [ Reply | More
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General Topics 06.03.20, 06:12 PM Flag
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Maintenance on any land lease building is going to be astronomical compared to similar buildings because the co-op has to pay rent on the land. But if $2800 sounds expensive to you, I'm guessing you are looking into studios or 1-brs? Both are so, so hard to resell (studios especially). I would continue to have her rent until she is ready for a 2 br. [ Reply | More
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General Topics 06.03.20, 06:53 PM Flag
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op- thank you [ Reply | More
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General Topics 06.03.20, 06:58 PM Flag
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