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.
West Virginia Fee Mortgage Provisions from a Ground Lease In West Virginia, fee mortgage provisions from a ground lease refer to the specific terms and conditions outlined in a ground lease agreement between a landlord and a tenant, where the tenant holds a fee simple interest in the property and intends to secure a mortgage loan. A ground lease is a contractual arrangement in which the tenant has exclusive rights to use and develop the land, typically for commercial or industrial purposes, while the landlord retains ownership of the land. When a tenant with a fee simple interest decides to obtain a mortgage loan, certain provisions come into play to protect the interests of both the landlord and the lender. Fee mortgage provisions in West Virginia stipulate various essential aspects, such as: 1. Subordination: This provision ensures that the ground lease is subordinate to the mortgage, meaning that if the tenant defaults on the loan, the lender's rights take precedence over those of the landlord. This provision protects the lender's investment and enables them to foreclose on the property, if necessary, without restriction imposed by the ground lease. 2. Notice: The landlord must receive prompt notice in the event of a default by the tenant on the mortgage loan. This provision allows the landlord to take appropriate actions, such as terminating the ground lease or negotiating with the lender, to protect their rights and interests. 3. Cure Period: A cure period provision gives the tenant an opportunity to rectify any default on the mortgage loan, thereby preventing the landlord from terminating the ground lease immediately due to the tenant's financial difficulties. This provision provides a balance between protecting the landlord's investment and affording the tenant a fair chance to resolve the default. 4. Assignment and Transfer: This provision outlines the conditions under which the tenant can assign or transfer their interest in the ground lease or the corresponding mortgage. It may stipulate that the lender's consent is required before transferring the lease or any changes to the mortgage. 5. Insurance: West Virginia fee mortgage provisions from a ground lease often include requirements for the tenant to carry adequate insurance coverage to protect the property, including liability coverage, hazard insurance, and property damage coverage. The landlord may be named as an additional insured party in the insurance policy. Different types of West Virginia fee mortgage provisions from a ground lease generally depend on the specific terms negotiated between the parties involved. While the aforementioned provisions are common, there might be additional clauses tailored to the unique circumstances of the lease and the interests of the landlord, tenant, and lender. It is essential for all parties involved in a ground lease with fee mortgage provisions to consult legal professionals well-versed in West Virginia real estate law to ensure compliance with state regulations and to address any specific requirements or concerns they may have.West Virginia Fee Mortgage Provisions from a Ground Lease In West Virginia, fee mortgage provisions from a ground lease refer to the specific terms and conditions outlined in a ground lease agreement between a landlord and a tenant, where the tenant holds a fee simple interest in the property and intends to secure a mortgage loan. A ground lease is a contractual arrangement in which the tenant has exclusive rights to use and develop the land, typically for commercial or industrial purposes, while the landlord retains ownership of the land. When a tenant with a fee simple interest decides to obtain a mortgage loan, certain provisions come into play to protect the interests of both the landlord and the lender. Fee mortgage provisions in West Virginia stipulate various essential aspects, such as: 1. Subordination: This provision ensures that the ground lease is subordinate to the mortgage, meaning that if the tenant defaults on the loan, the lender's rights take precedence over those of the landlord. This provision protects the lender's investment and enables them to foreclose on the property, if necessary, without restriction imposed by the ground lease. 2. Notice: The landlord must receive prompt notice in the event of a default by the tenant on the mortgage loan. This provision allows the landlord to take appropriate actions, such as terminating the ground lease or negotiating with the lender, to protect their rights and interests. 3. Cure Period: A cure period provision gives the tenant an opportunity to rectify any default on the mortgage loan, thereby preventing the landlord from terminating the ground lease immediately due to the tenant's financial difficulties. This provision provides a balance between protecting the landlord's investment and affording the tenant a fair chance to resolve the default. 4. Assignment and Transfer: This provision outlines the conditions under which the tenant can assign or transfer their interest in the ground lease or the corresponding mortgage. It may stipulate that the lender's consent is required before transferring the lease or any changes to the mortgage. 5. Insurance: West Virginia fee mortgage provisions from a ground lease often include requirements for the tenant to carry adequate insurance coverage to protect the property, including liability coverage, hazard insurance, and property damage coverage. The landlord may be named as an additional insured party in the insurance policy. Different types of West Virginia fee mortgage provisions from a ground lease generally depend on the specific terms negotiated between the parties involved. While the aforementioned provisions are common, there might be additional clauses tailored to the unique circumstances of the lease and the interests of the landlord, tenant, and lender. It is essential for all parties involved in a ground lease with fee mortgage provisions to consult legal professionals well-versed in West Virginia real estate law to ensure compliance with state regulations and to address any specific requirements or concerns they may have.
