Your Landlord's Lender Can End Your Lease by Keeping the Insurance Proceeds
Four filed leases carry the same termination trigger: the landlord may end the lease if any Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt. Prime Medicine and Korro Bio signed it five months apart in the same Cambridge building from the same landlord, Third Harmonic Bio signed a wider version in San Francisco, and Mangoceuticals signed it in Dallas in October 2025. The tenant's own termination right needs a Completion Estimate over one year or 270 days. The landlord's lender trigger needs no damage threshold at all, runs for 90 days after the casualty, and on termination the tenant assigns its own property insurance proceeds to the landlord, keeping only the unamortized hard cost of its build-out and not the part the allowance paid for. Korro's version adds five words that Prime's does not have. A 2002 senior living lease shows the opposite answer, where a mortgagee taking the proceeds buys the landlord an equitable extension of time and no exit at all.