subordinated ground lease

0.01 sec.

An agreement by a property owner in a ground lease situation to allow the tenant's construction lender to have superior rights to the land.The ground lease tenant often builds improvements on the rented land. If those improvements are made with borrowed money,the lender can take a mortgage only on what the tenant owns—the lease rights,not the land itself.If the lender forecloses on the leaseheld interest,it must continue paying rent to the property owner or risk loss of the lease and the improvements.This is generally unacceptable to a lender. It will require the property owner to put the land up as additional collateral for the loan—subordinate the ground lease to the mortgage.In other words,if the lender forecloses,it may take the land and the improvements. Property owners who agree to subordinated ground leases generally obtain higher-than-market rent for their land,to compensate for their increased risk.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
subordinate			Given that increased yield is based on increased risk, an unsubordinated ground lease (with lower risk to the landlord) would carry a lower land-lease rate than a subordinated ground lease, all other factors being equal. Determining ground-lease rental rates by Carneghi, Chris / Appraisal Journal Chapters Include:- Chapter 1 To Buy or to Lease Chapter 2 Development-Oriented Unsubordinated Ground Leases Chapter 3 Subordinated Ground Leases Chapter 4 Subordinated/Unsubordinated Ground Leases Chapter 5 Buying Land for Development Index For more information visit http://www. Allows You to Make a Strategic Investment or Lending Decision or ... by Business Wire			Subject Offer subject property Subject Quote subject to Subject to a Subject to a Can Subject to a print/execution/trading Subject to Collection Subject to Mortgage Subject to Opinion Subject to Verification Subjective Probabilities sublease sublet submarket submittal notice subordinate Subordinate Bond Subordinate Financing Subordinated Subordinated Bonds subordinated classes Subordinated Debenture Subordinated Debenture Bond Subordinated Debt subordinated ground lease subordinated mortgage Subordination Clause Subordination Policy Subpart F Subperiod Return Subprime lending subprime loan Subprime market Subprime Meltdown Subprime Mortgage subrogation Subrogee Subrogor Subscribe Subscription Subscription Agreement Subscription Period Subscription Price Subscription Privilege Subscription Ratio Subscription Right Subscription Warrant Subsidiaria subsidiaria integral Subsidiaria totalmente propia			subordinate lien Subordinate Local Directory System Agent Subordinate Memorandum of Agreement Subordinate Message Transfer Agent Subordinate Operations Data System subordinate part subordinate position Subordinate Simultaneous Micro-Threading Subordinate System subordinate to subordinate unified command Subordinate Voting Shares subordinate word subordinated subordinated subordinated subordinated Subordinated bond Subordinated bonds Subordinated Capital Income Securities subordinated classes subordinated debenture Subordinated debenture bond Subordinated Debenture Bonds Subordinated Debentures Subordinated debt Subordinated debt subordinated debts subordinated debts subordinated ground lease Subordinated loan Subordinated loan subordinated mortgage Subordinated Securities Subordinated Security subordinately subordinately subordinately subordinateness subordinateness subordinateness subordinates subordinates subordinates subordinating subordinating subordinating subordinating conjunction Subordinating conjunctions subordination subordination subordination subordination Subordination (trait) Subordination (trait) Subordination agreement Subordination agreement Subordination Agreements Subordination clause Subordination clause

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.