Financing a leasehold means lending against a contract rather than the fee. It is done routinely, but only when the ground lease itself contains the protections a lender needs — and the single most important one is simply time.
What the file turns on
Remaining term relative to the amortisation, whether the fee owner will subordinate, and the leasehold mortgagee protections: notice and cure rights, a new-lease right on termination, and consent to assignment.
Where deals fail
A ground lease with fewer years left than the loan, rent resets to an undefined market rate, and a fee owner who will neither subordinate nor sign an estoppel.
Fee purchase changes everything
Where the fee can be bought at the same time, the file usually becomes an ordinary commercial mortgage and prices accordingly.
Our minimum loan is $200,000. We are a direct commercial lender working across the 43 states we serve, in business since 1998. We do not publish a rate for this product because the number depends on the file — call and we will quote the deal in front of us.
NNN & Triple-Net Lease Loans · Commercial Lease Types and How They Change a Loan · Commercial lending · All loan types · All property types