Customers and lenders unfamiliar with the New York City landscape often are concerned when they find that their property sits on leased land.
Leased land is relatively common in New York City, some of the most prominent buildings in Manhattan are built on leased land.
The rule of thumb is simply that the land lease needs to run longer than the term of the mortgage. Typically these leases are for many years, 99 years or more. To be sure, obtain a copy of the lease and read through it, focusing on any unusual terms and provisions and the term of course.
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