Unsubordinated Ground Lease Solutions
Unsubordinated Ground Lease
An unsubordinated ground lease doesn’t have any subordination agreement, which is why it is less risky for the landowner. However, it can also make the leases get financed. And that is why the payments for unsubordinated leases are lower than subordinated leases.
However, suppose you are willing to go towards an unsubordinated ground lease. In that case, the skilled members of Wellington Financials are going to help you and guide you throughout the process until you successfully understand it. We are waiting to guide you toward the best possible leasing solutions. So, talk to us and get your issues sorted.
Is an unsubordinated ground lease a good option?
It is a good investment but not a great one because it is a bit riskier than subordinated ground lease. So before you decide on the lease, you should consult experts as we have on our team, which will help you carefully consider the structure, duration, and all the finances so that no clause is hidden from you.
In an unsubordinated lease, if the tenant defaults on to the loan, the landowner becomes the top priority for taking responsibility for improving the land. But the opposite happens in the subordinated land lease because, in that case, the landowner is on the low priority when it comes to the claims of the land. That is why the owner benefits from improvement on his property in a subordinated lease.
Since we are the operators and owners of many commercial and residential properties, we like to add value to our assets. Therefore, once the property is developed, it provides us with a steady stream of income while improving the existing value of the commercial property.
