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"affordable" leasehold condo estate

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warren asher

Thread Starter
Sophomore Member
Joined
Mar 4, 2004
Professional Status
Licensed Appraiser
State
California
This is a tricky one - I have been asked to appraise this property for a refinance. It apparently currently has a mortgage held by WaMu.

The property was developed as detached condominiums in 1999. The land is owned by the LA county housing authority. There is a recorded lease from the LACHA to the 'buyer' the lease describes a condo unit and common area on a 99 year lease and says that rent has been paid in full upfront.

I have discovered an assessors parcel number with a legal desscription "POSS INT DESC AS zzz street name #x LEASED FROM THE LA CITY HOUSING AUTHORITY zzz-zzz-zzz(parcel number of the land)"

It has roll values of $30,000 for the land and $134,000 for the improvements.

Are they paying property taxes on a lease?

The development is call "HARBOR VILLAGE"

Does anyone have knowledge of this property?

I imagine that a condo leashold estate could be appraised but it seems unlikely that it could be financed in a fed. rel. transaction.

Any constructive suggestions would be helpful.
 

warren asher

Thread Starter
Sophomore Member
Joined
Mar 4, 2004
Professional Status
Licensed Appraiser
State
California
I still need help

My AG just pulled out of this assignment stating "too many phone calls" as the reason.

I am an AR and am considering just doing the assignment myself.

Can anyone help?

Thanks
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
The taxes are not on the lease, but on the leasehold. Also, condo-leasehold is an odd name, because condos are usually fee simple. I am not sure what to call it instead.

However, appraising it should be like any other unit. With units in the same project you would have no ownership rights adjustment. If you have to use comps from another property that are in fee simple, there would be an adjustment to consider, but since the unit owner's lease payments are zero for the next 99 years, the adjustment should be very close to zero.
 
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