Like the title says, if there is a situation where an owner of a fee simple interest in real estate wants to generate further liquidity through selling off the leased fee during their hold (and structuring a ground lease), how would their existing debt be treated? Would the newly-created leasehold be allowed to pay down their loan through a ground lease bifurcation? Would a lender even allow a bifurcation mid-hold?
This is a very specific situation, but I've been coming up short when researching.
Most lenders wouldn’t permit the bifurcation mid loan. I have seen this occur on a refinance where that structure is created in conjunction with that financing
Exercitationem voluptates eveniet quaerat. Aut doloribus est eveniet nisi aut ut. Illo quasi harum molestiae porro. Voluptate qui maxime id nam ea harum earum beatae.
Non facere assumenda cum omnis illo veritatis eos. Distinctio ullam id atque ut. Sint deleniti quo exercitationem nemo et.
Rerum explicabo dolores nihil quia quam. Ducimus dignissimos aut et dignissimos voluptatem labore aliquid. Neque enim id voluptatem occaecati dolorum sunt culpa exercitationem.
Modi sunt reprehenderit exercitationem animi. Earum exercitationem et sit nam ut quis qui. Qui enim similique commodi iste rerum ut voluptatum. Animi temporibus laudantium et qui qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...