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Condo complexes with land leases
Helen

1 post
5-May-2007
6:24 PM 		A single condo unit in a complex with a land lease is considered to be a leasehold. Do all comps also have to be leaseholds? There are no other complexes in the area which have land leases. Also, do you know if there is there a Florida statute which states that a land lease or rec lease is always in a subordinate position to the mortgages on the units?
mbd

3 post s
13-May-2007
8:01 PM 		I believe that the land lease will be in a superior position to the mortgages. The lease probably stipulates that when the land lease ends, it reverts to a tenancy in common.

If there are no leashold comps available, then you have to use fee simple sales and determine the appropriate adjustment.

I recently did a leasehold condo and wound up comparing the unit to a cooperative, without any adjustment. Co-ops are also non-freehold estates. A co-op has a proprietary lease, whereby after a specific date, it can no longer operate as a co-op.

See this link as well: http://appraisersforum.com/general-appraisal-discussion/118259-new-construction-condo-land-lease.html

"Leasehold condominium" is an oxymoron because a condo is fee simple and leasehold is a non-freehold estate.