Rec Lease Question

[Kit5416]

I completed an appraisal in a large condo development (7,000+ units), there is a rec lease in place until 2035.
The UW has requested I change the rights appraised from fee simple to leasehold as the subject is encumbered with a long term lease.
I explained that the lease in place is not a land lease that impacts the land that the subject is located on, but only the recreational facilities.
The UW's stance is a rec lease is a form of a land lease and thus needs to be appraised as leasehold.
I'd love to hear everyone's opinion, and if there is any documentation that can be pointed to I'd appreciate it.
Thank you

 

[lostinthezone]

Leasehold only applies when there is ground rent for the property (land) that is documented in the deed. If there's a recreational lease it gets described in the 1073 on page 2 under Project Information. You could refer them to HUD guidelines which are fairly explicit on how the various forms get filled out. There may be a better source out there to point to though;

https://www.HUD.gov/sites/dfiles/SFH/documents/Arch_SFApprRpt_3_15_16.pdf

 

[Dublin ohio]

Leasehold only applies when there is ground rent for the property (land) that is documented in the deed. If there's a recreational lease it gets described in the 1073 on page 2 under Project Information. You could refer them to HUD guidelines which are fairly explicit on how the various forms get filled out. There may be a better source out there to point to though;

https://www.HUD.gov/sites/dfiles/SFH/documents/Arch_SFApprRpt_3_15_16.pdf

Exactly. The UW is an idiot. The rec facilities are leased to the HOA. Has nothing to do with ownership of individual units