This office lease form states that the lessor represents to the lessee that the existing fee mortgage is the only mortgage encumbering the land and the demised premises. The lessor agrees to cause the holder of the existing fee mortgage to agree to certain provisions.
Connecticut Fee Mortgage Provisions from a Ground Lease If you are considering purchasing or financing a property in Connecticut, it is crucial to understand the fee mortgage provisions from a ground lease. In a ground lease scenario, the landowner leases the land to the tenant who then constructs a building or property on it. The tenant assumes control and ownership of the improvements during the lease term. However, there are specific provisions in Connecticut that regulate fee mortgages associated with ground leases. Let's explore these provisions in detail along with the different types available: 1. Connecticut Ground Lease Fee Mortgage: A Connecticut Ground Lease Fee Mortgage is a legal document that grants a lender security interest over a tenant's fee interest in a property built on leased land. It allows the tenant to obtain financing using the property as collateral even though they may not own the land. The lender gains priority over any other claims on the property in case of default. 2. Lender's Consent: In Connecticut, before a tenant can grant a fee mortgage on a ground lease property, they typically need to obtain the consent of the landlord and any prior lien holders. This consent ensures that the ground lease provisions and rights of the landlord are not compromised. 3. Attornment Clause: An attornment clause is common in Connecticut ground lease fee mortgages. This clause specifies that if the landlord sells, transfers, or assigns their interest in the land, the tenant shall recognize the new owner as the landlord and continue paying rent and performing their obligations under the ground lease. 4. Subordination of Mortgage: Connecticut may require the tenant's fee mortgage to be subordinate to the landlord's ground lease. This provision ensures that the landlord's rights are protected in case of foreclosure or sale of the property. It allows the landlord to maintain control over the terms of the ground lease in any eventuality. 5. Non-Disturbance Agreement: To provide additional security to the tenant, a non-disturbance agreement may be part of the fee mortgage provisions in Connecticut. This agreement stipulates that in case of default or foreclosure, the new owner or lender will recognize the rights of the tenant under the ground lease and not disturb their possession or use of the property. 6. Release Clauses: Connecticut fee mortgage provisions may also include release clauses. These clauses specify the conditions under which the tenant's fee interest in the property can be released from the mortgage, allowing them to potentially sell or refinance the property. It is important to consult with legal professionals and review the specific terms and conditions of Connecticut fee mortgage provisions from a ground lease to ensure compliance and protect your interests. Understanding these provisions will enable you to navigate financing options smoothly and make informed decisions regarding property transactions in Connecticut.
