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The Defeasance Process

Defeasance Costs

The largest cost of a defeasance is the cost of the defeasance securities portfolio. The other costs of a defeasance are the various third parties' fees and the defeasance advisor's fee.

 
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The cost of the securities portfolio is the largest piece of cost and often requires a premium above the unpaid principal balance. For a full estimate, including the securities portfolio and all fees, try our TrueQuote™Defeasance Cost Calculator.

Defeasance Securities Costs

Third Party Fees

The following table summarizes estimated third party transaction fees.

Servicer Processing$10,000-25,000
Servicer Counsel$15,000-25,000
Ratings Agencies$0-15,000
Accountant$3,500-4,000
Securities Custodian$6,000-9,000
Successor Borrower$8,000-12,000
Average Third Party Fees~ $55,000

Capital Defeasance Group charges a $8,000-$25,000 fee for its defeasance advisory services depending on the speed and complexity of the transaction.

Get a customized TrueQuote™ Defeasance Cost estimate for your loan now, including all securities costs and third party fees.