Leasehold apartments

The City-Country-Mountain Apartments are leasehold property. This means that you can use, sell, give away, bequeath, or encumber the apartment like a “normal” condo apartment. 

A leasehold has been established for the land on which the City-Country-Mountain Apartments are being built. It was entered in the land register and lasts until 31 December 2120, so for more than 95 years still. In turn, this leasehold establishes the leasehold apartment ownership structure.

Thus, when you purchase a leasehold apartment, you only purchase the apartment, not the proportionate share of the land. The leasehold gives you the right to use the land for the duration of the leasehold, and ground rent is paid to the landowner in exchange for this. 

The advantage: Because you do not purchase the land, the purchase price for the apartment is considerably lower, but it can still be used, sold, given away, bequeathed, and encumbered just like normal property. There is also no difference when it comes to financing: Leasehold apartments are financed by banks just like “normal” condo apartments.

Upon expiration of the leasehold on 31 December 2120, ownership of the apartments will revert back to the owner – in this case, the church – unless the leasehold is extended by mutual agreement. However, the leasehold agreement stipulates that the landowner must at least offer to continue leasing the apartment to the leasehold apartment owners at an appropriate lease rate. Considering the fact that the average holding period for a condo apartment is 15 years, nearly seven generations of residents can use the apartment during this period of more than 95 years.

*In exchange, you pay low, ongoing ground rent of €2.10/square metre of net floor space/month