Basia & Andre, Home Buyer in Scottsdale, AZ

What are the landlease monthly fees in Briarwood North, Scottsdale? How long is the landlease presently and when could these fees be increased?

Asked by Basia & Andre, Scottsdale, AZ Fri Jul 23, 2010

Help the community by answering this question:

Answers

7
A land lease property is one in which the land beneath the home (or in AZ, it might also be a patio home or town home) is owned by someone else. In Scottsdale, the majority of land lease fees are when developers convert a rental property units to owner-occupied units, and/or the original owners refuse to sell the land. You'd also need to check the CC&R's because sometimes the land lease fees are tied to a certain percentage of the new buyer home price.

The downside is that these properties are sometimes harder to finance and consequently harder to sell, possibly reducing their resale value. Often times, there is a monthly HOA (Home Owners Association) fee in addition to the land lease fee.

The upside is that properties with a land lease fee are usually sell for less relative to other nearby properties.
There are quite a few Briarwoods in Scottsdale. Comparing Briarwood(s) One through Four in the 85050 zip, there are 11 for sale. Of the 11 homes for sale, there is one bank owned, one short sale and one owner agent, ,so it's a very stable community. Prices range from $138,900 to $399,500 (1,913 to 2,242 sq ft). The smallest home has 1,518 sf and the largest one has 2,697, priced at $199,900 to $295,000, respectively. Land lease varies from $225 to $988 per month and the HOA from $93 to $200 per month. These fees varied by Community as opposed to sq. footage or price, but you can see that would add quite a chunk to your monthly mortgage and many people don't have the cash or income on hand.

You'll need to "run the numbers" to see if the lower price makes sense when you add in the land lease and HOA fees. One other fee that comes up in certain parts of Scottsdale as well as the Biltmore Area is a "PAD" fee -- this is a "planned area development" fee. This fee is usually lower, the one I can think of off the top of my head is at Sandpiper (in McCormick Ranch) -- their PAD fee is only $185 annually.

Good luck with your home purchase! Yvonne
1 vote Thank Flag Link Wed Jul 28, 2010
The Land lease fees are paid monthly and are calculated at 1/10 of 1% of the purchasers price The best advice on Land Lease questions/ issue is to have the potential Buyers contact the Home owners Association, and ask for a copy of the Land Lease agreement to fully understand..
Also note: The HOA fees in Briarwood that the Realtors are providing here are quoted HIGH & incorrect.
Today- the HOA fee for Briarwood V are only $930 annually. That is approx. a mere $77 per month. When calculating the land lease with the LOW HOA fees, Briarwood is a great place and value to purchase Real Estate in the better area of Scottsdale.
I'm a Scottsdale home owner , and Scottsdale Native for 60 years and a 14 year seasoned veteran Realtor. I know what is a great area and a great investment. Some HOA fees in Scottsdale run $240 up to $1500 monthly, so sometimes it's better and wiser to purchase a low HOA fee such as Briarwood V, which does have a land lease fee.. If a Buyer can buy a single family residence in Scottsdale, north of Camelback Rd, south of Shea Blvd, that is 2600 sft, fully remodeled, for under $400,000, including a private back yard pool and have the front yard maintenance included in the HOA fees in a stable area such as Briarwood V, then purchasing in Briarwood is proof that it is a great investment. I say "buy in Briarwood!!!"
Debra Savittieri
Real Estate Consultant and Negotiator
(602) 570-9007
http://www.AzRealEstatePlus.com
Email: Showhome2u@cox.net
0 votes Thank Flag Link Wed Oct 30, 2013
Id be more than happy to help and assist you....


Ryan Buckley Realtor®
Turning your Dream into an Address
Coldwell Banker Residential Brokerage
480-440-4541
ryan.buckley@azmoves.com
http://www.liveinscottsdale.com
http://www.facebook.com/rcoldwellbanker
twitter @rcoldwellbanker
0 votes Thank Flag Link Thu Feb 7, 2013
The land lease payments in Briarwood North are 1/10th of 1% per month based on your specific purchase price - e.g. if you paid $400,000 for a house, your monthly lease payment is $400. If your neighbor paid $450,000, their monthly lease payment is $450. Additionally, all residences are assessed a monthly HOA fee - which is $140 in 2012.
0 votes Thank Flag Link Wed Feb 6, 2013
The HOA fees are much lower than what you posted in Briarwood V.
Flag Wed Oct 30, 2013
Hi Basia and Andre,
Landlease monthly fees in Briarwood North can range approximately a few hundred dollars per month to a thousand dollars per month. You also have to add in the HOA Fee which is around $140 per month according to the MLS Listings. You can always contact the HOA to make sure these dollar amounts are accurate.
The landlease could be 15 years or more. You definitely want to find out this information because the landlease could be coming due soon and the fees will most likely be adjusted up. Also if you are applying for a mortgage you want to make sure your loan will be approved based on "leasehold" ownership. Some lenders will not accept leasehold ownership because you do not own the land and the risk involved.
If you have additional questions and need representation contact me.

LISA KATZ, CSSN
REALTY EXECUTIVES
602-793-9300
0 votes Thank Flag Link Fri Jul 23, 2010
Sorry, typo in 1st answer. Land lease started in late 1970's. Thanks.
0 votes Thank Flag Link Fri Jul 23, 2010
The land lease in this community varies from around $700/mo. to over $900/mo. It is a 100 year land lease that began in the late 1070's. There was a substantial increase in this community's land lease rate in 2009. In addition there is an HOA here. If you are not working with a Buyer's Agent, please contact me at 602-463-2040 or jackeller02@gmail.com. I'd like to consult with you to find out your objectives. I'll be glad to help research and get more definitive answers to your questions.
0 votes Thank Flag Link Fri Jul 23, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer