Doug Ellwood
Freshman Member
- Joined
- Jan 15, 2002
This is a new one for me. Today I was asked to appraise a new construction of a detached single family home which is located in a new development referred to as a "Gated Adult Lifestyle" community. The land is a 35 acre parcel with imaginery lot lines (not sub divided), the members lease the land surrounding their home for $200/month as well as pay the maintenance fees and contribute to the reserve fund and Club house construction. My thoughts are if the owner decides not to pay the lease fees the home cannot be moved, the two elements are tied together permanently, one cannot exist without the other. Why would a bank lend under these circumstances. This may be common in the US, but in Canada its a new concept. Has anyone had a similar situation and how was it dealt with? Thanks in advance. [/quote]