Leasehold contract expires within 5 years
Do you own your own (single family) house, apartment or business premises and does your leasehold contract expire within 5 years? If so, you will receive a reissue offer from the municipality between 2 and 3 years before your current contract expires. You do not have to do anything for this.
In order to inform you about the reissue process, you will receive an invitation from the ground lease department (Erfpachtbedrijf) for an informational meeting.
- A month after the meeting you will receive the offer for a reissue in ground lease.
- If you agree to the offer, sign the declaration and return it to the ground lease department In the case of a whole plot (single-family house), a notary will immediately record the right of reissue in an act. In the case of an apartment, it will only be recorded once all the members of the homeowners association (Vereniging van Eigenaren, VvE) have agreed. This act will be registered in the land register.
- You do not need to accept the first offer from the municipality.
- Approximately 3 months before your current leasehold contract expires, you will receive a final offer. This final offer may be higher or lower than the first offer. This is due to the appraisal value and the ground rent percentage, which may have changed over the course of 3 years. You are obliged to accept this final offer.
Video with brief explanation
Watch the video (in Dutch) by clicking on the link below. This video explains in simple terms what it means when your leasehold contract expires.
- The ground lease right is reissued to the leaseholder. The old right ends.
- Two surveyors determine the land value for the reissue based on 55% of the market value of a similar piece of undeveloped land which is ready for development. This approach is recorded in the ‘appraisal instructions’.