Assuming everyone owns an equal amount of coop shares, then the amount of the building’s mortgage attributable to each unit is $150,000. This will be a problem as that $150,000 of building mortgage will add to the consideration or price as it relates to the calculation of transfer taxes. So your total consideration being paid for the purchase of the no board approval sponsor unit is actually $600,000 in the eyes of the city and state government.
That pushes you over the $500,000 threshold for NYC transfer taxes, and suddenly you owe NYC 1.425% instead of 1% of the purchase price in transfer taxes. Add the 0.4% still going to NY State in transfer taxes and your total transfer taxes are now 1.825% vs 1.425%! That’s a big difference!