Posted by David Alexander on January 19, 2000 at 18:25:55:
Sounds like a question for Ray. But my question will add to it. If you keep the Land then want the MH still be considered a MH, they only become RE when attached to the land, I believe.
David Alexander
Title Help - Split the Fee / Retain Land and Convey improvements only - Posted by DougO(NM)
Posted by DougO(NM) on January 19, 2000 at 14:57:06:
I am reading AD Kessler “Fortune at your feet” I am interested in his discussion on “Yanking the Land”, as I am in the process of researching the pros, cons, and technical considerations to do this. I am wanting to develop a subdivision, (which I believe will be easier to get through P&Z than a manufactured (mobile) home community, retain title to the land and lease it to the homebuyer. I would develop each lot using a manufactured home, ground level set with a permanent foundation, I want the homebuyer to be able to qualify for conventional finance terms and rates, to make this an affordable development in an expensive area. I have spoken with a large lender that says all they require is a lease at least 5 years longer than the mortgage. Does anyone know what language in the deed accomplishes splitting the interest in the land and the improvements ? Also, what kinds of problems might a title company and lender face under this scenario ?
Thanks for any help and insights you may have
Doug
Got Partial Answer - Posted by DougO(NM)
Posted by DougO(NM) on January 19, 2000 at 18:57:44:
Spent the After Noon reading “Introduction to the law of real estate”, “Tiffany on Real Propety” and “Preface to Estates in Land and Future Interests” (And I’m still awake) A long term lease is considered “an estate for years”, therefore the improvements do not have to be conveyed or included in the fee in order for an interest in the land to be created. Soooooo, if a potential homebuyer is given an estate for years in the property via a lease, that is “good enough” for them to get financed as if they owned the dirt too. Of course there are some “details” to iron out for leases and mortages, but it’s being down right now. Today I found a developer dong EXACTLY what I want to do and I’m flying out to buy him lunch, pick his brains and read their docs !
More later
Doug