VA: Leased Fee NOT Leasehold

[sputnam]

I am working on a VA new construction, property and is being purchased as a sub-leasehold, the ground rent is set at a set price at $24,000 for all homes, the property is on leased land and expires in 2098, then a new ground rent will be owed but I don't know what that will be.

If the effective date of your appraisal is in 2025, it doesn't matter how much the ground rent will be in 2098.

 

[Zoe]

Remember VA is insuring a portion of the loan for the veteran and the mortgage is on the whole real property rights (with exceptions) with the lender.

You have already answered your question before you asked which property rights you need to appraise for the veteran and VA.

 

[Zoe]

You could ask if VA would do a mortgage for leasehold property rights for the veteran. I have never experienced that. I am not saying it is not possible.