Chester Park Cooperative is a member-owned, not for profit Association. When you purchase your home here, you become a member and shareholder in our Co-op and corporation. You own 1/142 share in the building. In the real-estate world, we are defined as a leasehold estate; meaning that essentially, you are leasing your home from yourself as a member/owner.
Chester Park has a nine-member Board of Directors who approve all incoming members. When a Seller uses our Management to market their home, they set the asking price. As a potential member, a Buyer would be furnished with a list detailing the selling price of all comparable units. Our management team works as neutral mediators between Buyer and Seller, facilitating a satisfactory agreement between both parties.
The asking or unit price, minus the current mortgage balance is the subscription price or down payment. Chester Park has a blanket mortgage covering the entire building. Some units are completely paid off and have no mortgage, while others may have a mortgage balance. Due to restrictions from our lender, with the exception of the regular amortization, it will not be possible to pay off early or pay down the existing mortgage until December of 2022.
Financing Fees Example
Using the dollar amounts from the example above. A Unit Price of $175,000 minus the Mortgage Balance of $100,000 equals a Down payment of $75,000. ($175,000 – $100,000 = $75,000)
If you need help financing the down payment portion of a specific unit, it is possible to do a “Share” loan through our lender, National Cooperative Bank. See their website at http://ncb.mortgagewebcenter.com or call (866) 622-6446 to speak with one of their mortgage specialists to answer any of your questions.