The Rotterdam city council wants to adjust the leasehold system. More modern and with more freedom of choice, says the alderman. Leaseholders who want to buy the land under their home can soon do so temporarily at a lower price. There will also be a new arrangement for deferral of payment of the ground rent.
Those who have bought a house with leasehold own the house itself but not the land on which the house stands. That land is owned by the municipality. The homeowner pays a kind of rent to the municipality for this. This rent is called ground rent. The ground rent is a certain percentage of the value of the land.
Concerns about paying more
There are about 25,000 homes with leasehold in various neighborhoods in Rotterdam. Last year, some owners considered buying the land under their home but were shocked by the high price. The municipality has listened carefully to these concerns, says alderman Zeegers of Climate, Building and Housing. Additional research has also been conducted. This has led to a proposal to adjust the leasehold policy.
Leaseholder can choose
The basis of the new policy is freedom of choice. Every leaseholder can now make the choice that suits him or her best, says Zeegers. We have modernized the system and will also improve communication with leaseholders. The leaseholder can choose: either continue paying the ground rent quarterly or buy the land under the house with a lump sum.
Buying land
Leaseholders who want to buy the land under their home can do so temporarily at a lower price, namely a maximum of 60% of the current land value. Structurally, the lump sum will be a maximum of 75% of the land value. The land will be independently appraised. Leaseholders who disagree with the appraisal can consult three experts who will give a binding opinion.
Lower ground rent amounts
For those who want to continue paying ground rent, the municipality already lowered the ground rent percentage to 3.06% of the land value last year. This makes the ground rent amounts comparable to those in other G4 municipalities. The municipality is still investigating the possibility of further lowering the ground rent.
Those who cannot pay the ground rent can, under certain conditions, get a deferral of payment until the house is sold. The debt to the municipality is then paid from the surplus value of the house. This way, no one has to leave their home.
More information: www.rotterdam.nl/erfpacht
Also watch the explainer. Link opens an external page from the Municipality of Rotterdam about leasehold.
