Leasehold Financing Demands Particular Protective Provisions


Construction and permanent financing of development projects on leased land can pose unique challenges for lenders. Most of these challenges can be better understood if the ground lease is perceived as a senior financial obligation with priority over the project lender's mortgage or other security interest in the property.

Under leasehold financing - which is a form of equity financing - in lieu of purchasing the land, the developer incurs a long-term ground-rent obligation to the landowner, and the owner retains the right to terminate the lease if the ground rent is not paid.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Miller Starr Regalia | Attorney Advertising

Written by:


Miller Starr Regalia on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.