Section 15 Leasehold Mortgages
| Library | Real Estate Leasing and Landlord-Tenant Actions and Remedies 2011 |
Tenants may obtain financing by granting leasehold deeds of trust encumbering long-term leases that involve properties of considerable value or the construction of valuable leasehold improvements. Institutional lenders generally will require rather extensive provisions in the lease giving them the right to cure defaults and protect the collateral for the loan. If it is anticipated that this may be the case, two special provisions must be placed in the lease when it is originally drawn. Adding these provisions by a supplemental agreement is often quite difficult.
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