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.
Kings New York Fee Mortgage Provisions from a Ground Lease refer to the specific terms and conditions regarding mortgages on properties governed by a ground lease in the state of New York. This provision encompasses the rights and obligations of the fee mortgagee (the party lending the funds) and the fee mortgagor (the property owner) concerning the leased land. In the context of Kings New York, there are primarily two types of fee mortgage provisions from a ground lease: 1. Absolute Assignment of Rents: This provision grants the fee mortgagee the right to collect and apply all the rents, income, and profits generated by the leased property directly towards the outstanding mortgage debt. This serves as a security measure for the lender, ensuring a steady source of income to offset the risk of default by the fee mortgagor. The assignment of rents often becomes effective when the mortgagor defaults on the loan payment. 2. Subordination of Lease: This provision establishes the priority of the fee mortgage over the ground lease. It ensures that in case of default or foreclosure, the fee mortgagee's rights supersede those of the ground lessor. As a result, the fee mortgagee has a higher claim on the leased property and its income, providing more protection for the lender. These fee mortgage provisions are essential components of ground leases in Kings New York, as they serve to protect the interests of both the fee mortgagee and the fee mortgagor. They provide a framework for financing properties subject to ground leases, giving lenders reassurance of a reliable income stream and a solid foundation for their investment. When considering a ground lease in Kings New York, it is crucial for both parties to thoroughly understand and negotiate the fee mortgage provisions. Engaging legal professionals with expertise in New York real estate law is highly recommended ensuring compliance with local regulations and secure a mutually beneficial agreement. By addressing these provisions adequately, the fee mortgagee and fee mortgagor can establish a strong financial foundation for the success of the leasehold property.Kings New York Fee Mortgage Provisions from a Ground Lease refer to the specific terms and conditions regarding mortgages on properties governed by a ground lease in the state of New York. This provision encompasses the rights and obligations of the fee mortgagee (the party lending the funds) and the fee mortgagor (the property owner) concerning the leased land. In the context of Kings New York, there are primarily two types of fee mortgage provisions from a ground lease: 1. Absolute Assignment of Rents: This provision grants the fee mortgagee the right to collect and apply all the rents, income, and profits generated by the leased property directly towards the outstanding mortgage debt. This serves as a security measure for the lender, ensuring a steady source of income to offset the risk of default by the fee mortgagor. The assignment of rents often becomes effective when the mortgagor defaults on the loan payment. 2. Subordination of Lease: This provision establishes the priority of the fee mortgage over the ground lease. It ensures that in case of default or foreclosure, the fee mortgagee's rights supersede those of the ground lessor. As a result, the fee mortgagee has a higher claim on the leased property and its income, providing more protection for the lender. These fee mortgage provisions are essential components of ground leases in Kings New York, as they serve to protect the interests of both the fee mortgagee and the fee mortgagor. They provide a framework for financing properties subject to ground leases, giving lenders reassurance of a reliable income stream and a solid foundation for their investment. When considering a ground lease in Kings New York, it is crucial for both parties to thoroughly understand and negotiate the fee mortgage provisions. Engaging legal professionals with expertise in New York real estate law is highly recommended ensuring compliance with local regulations and secure a mutually beneficial agreement. By addressing these provisions adequately, the fee mortgagee and fee mortgagor can establish a strong financial foundation for the success of the leasehold property.
