Legal Question in Real Estate Law in Delaware

Property on Leased Land
I am considering buying a home in a seniors 55+ community. The homes are located in Delaware. I've never heard of buying a home but I won't own the land. I will pay taxes on the house but I won't have to pay taxes on the land. I've looked at three senior communities in Delaware and all three have this leased land feature. Is this a bad thing. I can picture the developer wanting to sell the land somewhere down the road--and then what do I do? Also I've found that no banks that I've contacted (so far)will not make a loan on this type of property. So it looks as if I'm forced to use the mortgage company at the senior's community. It scares me that no banks will finance this. Please let me know when I can see your response and where. You can email me if you like.
Thanks

Asked on 11/13/04, 11:37 am

2 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Property on Leased Land

You've already received a red warning flag in the fact that no banks that you've contacted would be willing to offer a mortgage on this type of property and that anyone who does want such a mortgage must deal with the seller's incestuously connected(from a financial perspective) mortgagor.

Without going any further into all of the possible problems with this type of purchase other than what you've already alluded to, if I were you I would look elsehere for a retirement home.

Answered on 11/15/04, 10:17 am

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