Buying a condo on leased land in Costa Mesa

[OCcubanita_IHB]

Hello -

I am a first-time home buyer and am looking to get myself into a condo now that prices have come down significantly in Orange County (I was priced out of the market prior). I am looking in the Costa Mesa and South Coast Metro areas as that's where I am currently renting and really like living in this area. I'm currently in the process of getting pre-qualified and have started to look around at condos in the area. I really like these condos near South Coast Plaza but my real estate agent has told me that they are on leased land. Question - what are the differing opinions on buying on leased land? Is it a good or bad idea? Where would I go to find information on when the lease terms (such as when the lease ends, etc.)? I've done some searching online and in these forums but haven't really been able to find any detailed information. Thanks!

 

[OCCOBRA_IHB]

[quote author="OCcubanita" date=1229311853]Hello -

I am a first-time home buyer and am looking to get myself into a condo now that prices have come down significantly in Orange County (I was priced out of the market prior). I am looking in the Costa Mesa and South Coast Metro areas as that's where I am currently renting and really like living in this area. I'm currently in the process of getting pre-qualified and have started to look around at condos in the area. I really like these condos near South Coast Plaza but my real estate agent has told me that they are on leased land. Question - what are the differing opinions on buying on leased land? Is it a good or bad idea? Where would I go to find information on when the lease terms (such as when the lease ends, etc.)? I've done some searching online and in these forums but haven't really been able to find any detailed information. Thanks!</blockquote>


Well if you RE agent says they are on leased land he/she should know a whole lot more on this especially if this is their area they farm. If you can get the tract number or address you can get a look at the CC&R's (Convents, Conditions and Restrictions) of this property at the county seat in Santa Ana as they are Recorded as public record. Ask your agent to do this for you. If the agent is unwilling to help you find more information then find one that will. A good agent who is going to disclose this better know the details backwards and forwards. Leased land was a big thing in Irvine but that was a long time ago. Usually it was for 99 years. It depends on your plans for the Condo. If there is more than 50 years left who really cares and you will probably sold the unit by then. The other thing is go into the complex and start talking to people who live there, this will give you more info as to what is going on.

 

[ogredave_IHB]

Is this Village Creek? I remember looking at a couple places there .. Patrick Bart something or another ignores all calls (agent). HOA supposedly trying renegotiate the land lease, but they won't return any emails. AFAIK it's at about 35 years remaining. Watch out if you get a 30 year loan ..



Ultimately just not worth the time right now .. that's an expensive HOA payment for some place that doesn't return correspondence.



My opinion on Village Creek, FWIW.