Getting a mortgage on leased land can be a difficult depending on the lease. If a lease is not prepaid it is very difficult if not impossible to finance due to the risk to the lender. In most cases if the lease is not prepaid the vendor or seller would hold the mortgage as a vendor takes back.
For leases that are pre –paid there are a few banks and local credit unions that will offer up financing. The information that will be required is usually an application client agreement and the lease agreement for the property. These applications usually come with a small fee to set up due to the work involved.
For Equity Lending on Leased Land we turn to the private mortgage market. Depending on the lease and the location equity lenders will look at up to 70% loan to value of a prepaid lease usually needing to be 55 years plus left in the lease, but we have been able to find financing on leased homes as low as 20years on a case by case.
Interested in learning more about leased land or native leased land lenders in BC call today.
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