Case Studies

Back

Adam Leitman Bailey, P.C. Helps Co-op Secure Long-term Capital Projects by Refinancing Underlying Mortgage


luxury

Every eight to ten years, most cooperative housing corporations in New York City refinance their underlying mortgages. That is because many co-ops, rather than taking 15/30 year self-amortizing mortgages which are paid in full at the expiration of the loan term, take out 10-year loans that are often interest-only or “balloon” mortgages where the entire amount borrowed is due and payable at the expiration of the 10-year term. The “balloon” payment must fully paid at the end of the loan term, which is why co-ops frequently find themselves contemplating a mortgage refinance.

Adam Leitman Bailey, P.C. recently represented a luxury co-op on the Upper East Side of Manhattan in connection with the refinancing of their underlying mortgage. The co-op refinanced the prior underlying mortgage of $3,000,000 with an interest-only mortgage in the amount $4,000,000 at an astonishing interest rate of only 3.666%. The co-op realized net proceeds of more than $835,000 as a result of the refinance which will be used to fund long-term capital projects that have been on the co-op’s “wish-list” for many years.

Attorneys at Adam Leitman Bailey, P.C. successfully overcame numerous obstacles, including a quick closing deadline, to ensure the co-op captured a low interest rate and closed prior to the enactment of an impending new tax bill being negotiated by Congress.

Additionally, Adam Leitman Bailey, P.C. was able to reduce the co-op’s refinance costs by approximately $84,000 by taking advantage of a loan consolidation, modification, and extension which required the co-op to only pay mortgage recording tax on the difference between the old mortgage and new mortgage, or $1,000,00, rather than on the entire new mortgage of $4,000,000.

Related Attorneys

Andrew C. Jorges

Related Content

“I’ve been treated as a professional and an attorney since day one” With “Professionalism, Support, and Persistence”, ALBPC Works Hard to Keep Tax Benefits for Client “It is so nice to work with people who can become part of your work family. You are an amazing attorney, and always go above and beyond…” “Tears in my eyes as I thank God for you and your staff.” “I’ve learned so much and gained knowledge with a desire to work in the real estate department.” Adam Leitman Bailey, P.C. Successfully Defends Foreclosing Plaintiff’s Action against Motions to Vacate and Dismiss Adam Leitman Bailey, P.C. Defeats Standing Defense and Wins Summary Judgment for Foreclosing Plaintiff ALBPC Obtains Condo Deposit Refunds for Two Clients Totaling Over $10 Million, Including Interest Adam Leitman Bailey, P.C. Assists with Drafting the Foreclosure Motion Templates Promulgated for Use By Administrative Order 356/17 Adam Leitman Bailey, P.C. Provides Free Closings For All Employees Adam Leitman Bailey, P.C. Wins Judgment for Small NY Brokerage After Years-Long Court Battle ALBPC Prevails in a Complex Non-Primary Residence Case for 100-year-old Woman, Pro Bono ALBPC Prevails in a Complex Non-Primary Residence Case for 100-year-old Woman, Pro Bono ALBPC Prevails in a Complex Non-Primary Residence Case for 100-year-old Woman, Pro Bono Handling and Storing Hazardous Materials Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender (Part I) Adam Leitman Bailey Presents at New York State Bar Association Advanced Real Estate Topics: “Advice from a Litigator” Christopher Halligan Speaks to the New York State Bar Association on Jury Trials in Landlord – Tenant Proceedings Adam Leitman Bailey Lectures for New York State Bar Association on Easements, Adverse Possession and Arcane Laws to Overcoming Building Obstacles Adam Leitman Bailey Guest Lecturer at New York Law School’s Landlord-Tenant Class NYSBA – Removing Real Estate Development Obstacles: Zoning, Restrictive Covenants, Easements, Adverse Possession and Boundary Disputes

Adam Leitman Bailey, P.C.

NEW YORK REAL ESTATE ATTORNEYS