Answers (2)
- Chris Bodden, "Chris M.T. Bodden"
- Contributions:31
I haven't heard of changing a property from fee simple to leasehold, only the other way around. I'm sure it is possible, but not sure if it would be worth your time and effort to do so. Also if you were to make it a leasehold you would most likely want to make it more than 30 years so that the new buyer could get a mortgage to purchase your property. I believe that the lease has to run for at least 5 years past the maturity date on the note (ie 35 years for a 30 year fixed). [content removed by moderator for being self promotional]
- Molly Taylor, "TaylorRealEstate"
- Contributions:8
If I understand your question correctly I may be able to offer a little insight.
Because of my dealings in Palm Springs, CA where some of the land is held by Native American tribes and some by corporations. You should start by asking yourself a few questions:
Are there other properties in your homes area that are leased land or would yours be the only one in the very specific area that your home is located?
Usually there is a trade in the lack of land ownership in that the property is less expensive than one which is fee simple - is this what you are referring to in the agent will miss out on some of the commission?
A lease in the area where I have experience typically starts at or around 99 years, once it becomes close to 30 it becomes difficult for buyers to attain proper financing (unless lease is in a favorable renegotiation)...
I would suggest that you contact an attorney in HI to talk further about the contracts necessary for your idea.
.... unless you are talking about 30 year lease of the property?
I hope this helps.
Molly Taylor
Because of my dealings in Palm Springs, CA where some of the land is held by Native American tribes and some by corporations. You should start by asking yourself a few questions:
Are there other properties in your homes area that are leased land or would yours be the only one in the very specific area that your home is located?
Usually there is a trade in the lack of land ownership in that the property is less expensive than one which is fee simple - is this what you are referring to in the agent will miss out on some of the commission?
A lease in the area where I have experience typically starts at or around 99 years, once it becomes close to 30 it becomes difficult for buyers to attain proper financing (unless lease is in a favorable renegotiation)...
I would suggest that you contact an attorney in HI to talk further about the contracts necessary for your idea.
.... unless you are talking about 30 year lease of the property?
I hope this helps.
Molly Taylor
Selling a HI residence fee simple vs leasehold
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