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<DIV>Mark, </DIV>
<DIV> </DIV>
<DIV>I am not sure we are discussing the same topic.</DIV>
<DIV> </DIV>
<DIV>I understand that the house loan lenght is not defined by the time
(left) on a land lease. </DIV>
<DIV> </DIV>
<DIV>I am wondering what happens when for example there is only 80 years left on
the lease but a bank needs 90 years left to give a loan. Say for another
example in 5 or 10 years the home owners wanted to or needed to
refinance... are they able to and how does this work. Do we need to put
into the lease an auto extension for x amount of years (as long as the
terms of the YRHC are still being met). For another example, what if
in 20 years the house is up for sale, can a new buyer find a bank willing to
lend money with only 70 years left on the lease? </DIV>
<DIV> </DIV>
<DIV>I don't remember the exact numbers of years needed on the lease for the
bank minimum (was it 30 or 99 years?). It doesn't matter as long as
whatever the criterior needed can be met in the future. This type of loan
may be easier (more banks and less conditions) or harder to obtain in the
future. Maybe the banks could tell us what they see in the future of that
trend.</DIV>
<DIV> </DIV>
<DIV>For a today's example maybe Alden can chime in here with how many years the
(Camden?) bank that he found wants to see. The number of years needed to
be left on a lease to be considered for a construction loan on leased
land. Maybe the bank could tell us what would happen in today's world on a refi
or a sale with less time on a lease. Maybe YRHC needs to explore with
the bank(s?) if there are any loan programs or conditions etc. that address
this.</DIV>
<DIV> </DIV>
<DIV>I would think the YRHC would want to address this now to be sure that
those in a YRHC deal wouldn't have to get town approval 20 years from now at a
town meeting just to lenghten a lease so they could sell thier house.</DIV>
<DIV> </DIV>
<DIV>I also see other potential problems if this is not easily addressable in
the future, such as I mentioned above; If those in the YRHC deal wanted (or
needed) to refinance for a better rate they may not be able to wait until
the town approves an extension on their lease.</DIV>
<DIV> </DIV>
<DIV>Chris P.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV style="FONT: 10pt arial">----- Original Message -----
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
title=Mlongreene2@aol.com
href="mailto:Mlongreene2@aol.com">Mlongreene2@aol.com</A> </DIV>
<DIV><B>To:</B> <A title=Chris@PeanutAllergy.Com
href="mailto:Chris@PeanutAllergy.Com">Chris@PeanutAllergy.Com</A> </DIV>
<DIV><B>Cc:</B> <A title=housingcommittee@townoflongisland.us
href="mailto:housingcommittee@townoflongisland.us">housingcommittee@townoflongisland.us</A>
</DIV>
<DIV><B>Sent:</B> Wednesday, April 04, 2007 5:13 PM</DIV>
<DIV><B>Subject:</B> Re: [Year-Round Housing Committee] Fw: mortgages in future
obtainable?</DIV></DIV>
<DIV><BR></DIV><FONT id=role_document face=Arial color=#000000 size=2>
<DIV>Chris, The bank loan will run the length of the <U>house
loan</U> and is not connected time wise to the lease. If the house must be
sold for whatever reason, I envision that the YRHC and/or Town will
have first option and offer it to those on the waiting list. If no one is
interested other options would be to rent it until it could be resold or if
there is no need for it any longer (which seems unlikely) the Town and/or YRHC
could sell it and the land for full market value.
Mark </DIV></FONT><BR><BR><BR>
<DIV><FONT style="FONT: 10pt ARIAL, SAN-SERIF; COLOR: black">
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