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SNDA Subordination Calculator

SNDAs required for financing. This calculator sizes effort.

$
%

Total SNDA cost

$21,600

Critical path days

31

Tenants in negotiation

6

How the math works

Total cost = tenants × legal cost. Critical path driven by any tenant in negotiation.

On 12 tenants with 50% negotiating and 21 days per: ~31-day critical path, $21.6k legal cost. Lenders often condition closing on SNDA delivery — start immediately post-LOI to protect closing date.

How to Use

  1. Enter tenant count requiring SNDA.
  2. Enter SNDA legal cost per tenant.
  3. Enter % requiring negotiation.
  4. Enter negotiation days.
  5. Read total SNDA cost and timeline.

Frequently Asked Questions

What is SNDA?

Subordination (tenant agrees their lease is subordinate to lender's mortgage). Non-disturbance (lender won't disturb tenant possession if lender forecloses, as long as tenant current). Attornment (tenant agrees to recognize lender as new landlord post-foreclosure).

Why needed?

Lender conditions loan on SNDA from major tenants. Without SNDA, lender mortgage priority may be junior to lease if lease recorded first. SNDA rebalances — tenant subordinates lease, but lender promises non-disturbance. Win-win.

Negotiation points?

Tenant: non-disturbance language, recognition of free rent/concessions, TI commitments carrying forward. Lender: attornment obligations, cure rights. Typical SNDA negotiation: 2-6 weeks with competent counsel both sides.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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