<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso-8859-1">
<META NAME="Generator" CONTENT="MS Exchange Server version 6.5.7651.59">
<TITLE>RE: [Year-Round Housing Committee] Fw: Fw: mortgages in futureobtainable?</TITLE>
</HEAD>
<BODY>
<!-- Converted from text/plain format -->
<P><FONT SIZE=2>Hi Chris,<BR>
<BR>
My contact at Camden National Bank says they typically finance ground leases with a term of 99 years. I am unsure what they do about financing on a ground-leased parcel whose lease term has partially elapsed. <BR>
<BR>
However, although I can't speak for Mark or the committee, it seems plausible to me that the YRHC might renegotiate a ground lease to an eligible tenant so that it would start at "zero", if that were necessary to finance the purchase of the building. Of course, I could be missing something.<BR>
<BR>
Does that answer your question?<BR>
<BR>
Alden<BR>
<BR>
<BR>
-----Original Message-----<BR>
From: housingcommittee-bounces@townoflongisland.us on behalf of Chris@PeanutAllergy.Com<BR>
Sent: Fri 4/6/2007 12:55 PM<BR>
To: Mlongreene2@aol.com<BR>
Cc: housingcommittee@townoflongisland.us<BR>
Subject: [Year-Round Housing Committee] Fw: Fw: mortgages in futureobtainable?<BR>
<BR>
Mark,<BR>
<BR>
I am not sure we are discussing the same topic.<BR>
<BR>
I understand that the house loan lenght is not defined by the time (left) on a land lease.<BR>
<BR>
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?<BR>
<BR>
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.<BR>
<BR>
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.<BR>
<BR>
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.<BR>
<BR>
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.<BR>
<BR>
Chris P.<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
----- Original Message -----<BR>
From: Mlongreene2@aol.com<BR>
To: Chris@PeanutAllergy.Com<BR>
Cc: housingcommittee@townoflongisland.us<BR>
Sent: Wednesday, April 04, 2007 5:13 PM<BR>
Subject: Re: [Year-Round Housing Committee] Fw: mortgages in future obtainable?<BR>
<BR>
<BR>
Chris, The bank loan will run the length of the house loan 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<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
--------------------------------------------------------------------------------<BR>
See what's free at AOL.com.<BR>
<BR>
</FONT>
</P>
</BODY>
</HTML>