LAKE CYPRESS SPRINGS & Leasehold Estate Properties

 "Getting financing on Leasehold Estate Properties can be difficult for many Lenders and Banks.  However, Southern Mortgage Group has pre-established banking relationships and have provided millions of dollars in mortgage loans on Leasehold Estate properties at Lake Cypress Springs, TX." 

Q: What is a Leasehold Estate Property?

A: (By definition) a leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. Leasehold is a form of property tenure where one party buys the right to occupy land for a given length of time. As leases are a legal estate, leasehold estate can be bought and sold on the open market, until the end of the lease period (often measured in decades; a 99 year lease is quite common). The leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Terms of the agreement are contained in a lease agreement, which has elements of contract and property law intertwined. (Check the subdivision bylaws for specifics). At Lake Cypress Springs - You own the improvements and lease the land.

Q: Why are properties on Lake Cypress Springs Leasehold Estate?

A: There are several man-made lakes in Texas. Many of these Lakes were built by the Army Core of Engineers (ACE). The ACE built lakes such as: Lake Lewisville, Lake Grapevine, Joe Pool Lake and many more. These lakes were built to control natural resources, and civil works facilities.  However, Lake Cypress Springs is a Man-Made lake that was built to control overflow by private companies/individuals who owned the surrounding area. Texas State Law requires that an independent authority control any natural resource. The Franklin County Water District is a conservation and reclamation district created by a special act of the Legislature in 1965. The Franklin County Water District owns and maintains Lake Cypress Springs and the adjoining properties. It uses its authority to ensure the protection and constructive use of the area's natural resources. They provide lease ownership on a 99-year lease agreement. For more information contact the Franklin County Water District.

Q: Do Leasehold Estate Properties allow for financing? 

A: Michael D. Kapp has successfully funded over $50 million in loans on Leasehold Estate Properties. Every month we receive calls from Borrowers who initially used another lender for their financing, only to discover that their lender was unable to do so because of the leasehold complexities. The reason that Southern Mortgage Group . is able to create financing on Leasehold Estate is our attention to details and our long-standing relationships with our lending partners. Southern Mortgage Group works hard to make the process of buying leasehold estate properties painless.  

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Q: What does leasehold mean for me, and my investment?

​A: The leasehold is about control.  The FCWD ensures that your neighbors do not damage the water supply and also, keep the area in its most beautiful condition.  D Magazine Continues to report Lake Cypress Springs as “The Most Beautiful Lake in Texas”. Most homes located “on the water” are in already established neighborhoods. Many of these neighborhoods were put under the Leasehold Estate in 1978. Therefore the Leasehold is valid until 2077 (99 years). The FCWD will also allow you to renew the lease for an additional 99 years, which would extend the lease until the year 2176. Leaving you plenty of time of worry free fishing, boating, skiing, and whatever you want to do on Beautiful Lake Cypress Springs.