Appraisal and land value for leasehold

Ground lease is the right to use land owned by someone else. The leaseholder pays a price for this right: the value of the land.

The land value is established by a surveyor based on the location, what is allowed to be built on the land and the market prices. Based on this land value, the municipality establishes the ground rent to be paid.

External surveyors determine the new land value using appraisal instructions drawn up by the municipality in consultation with real estate brokers in The Hague.

Appraising land value

The municipality commissions a surveyor to determine the value of the land based on the appraisal instructions and his knowledge of the housing market. The brokers who perform the appraisals for the municipality are independent. They work on their own and are members of a professional body.

The value of a house consists of the value of the land and the value of the structure. The land and the structure cannot be sold separately. The land is thus part of the value of your house. The broker appraises the value of your leasehold land, as if it were an undeveloped piece of land. This may be developed according to the provisions in the zoning plan and according to the provisions of the ground lease right.

Appraisal

During the appraisal the surveyor takes into account:

  • the market value of the real estate (land with structure)
  • the zoning plan for the land (what may be built on it) and the actual use
  • the size of the home or business 
  • the shape and dimensions of the piece of land
  • the position and location of the plot
  • the type of building (for example upper floor apartment or villa) 
  • the size of the garden 
  • for an apartment: the floor on which the apartment is located.

For the appraisal, the condition and design of the building are not important. Someone who looks after their building will not be penalised with a higher land value. When appraising land, the price is calculated per piece of land and not by square metre.

Appraisal report

The surveyor records the result of the appraisal in a report. The municipality bases its offer on the appraisal. If you wish, the surveyor can explain an appraisal. If you do not agree with the appraisal, you can start a procedure to call in experts.

Procedure to call in experts

You inform the municipality that you wish to start a procedure to call in experts. You then ask an expert to establish the land value. The municipality also appoints an expert. These 2 experts together choose a third expert. The 3 experts determine the land value together. You and the municipality are obliged to accept the result of these experts.

Appraisal for a reissue

For a reissue, the land value of developed ground is never higher than 55% of the value of undeveloped land. For more information, visit Leasehold contract expires within 15 years.

Appraisal of bare ownership

The price of bare ownership is 2.5% of the value of the developed land. The purchase sum may increase if the zoning plan permits wider use than is recorded in the ground lease right. If you can divide your right into apartments, the value of the bare ownership also increases.

When appraising the options for expansion, the surveyor takes into account the municipal policy. Thus for houses which are more than 20 years old, the surveyor does not calculate the land value for an extension to the house of a maximum of 50 square metres in surface area.

For more information, visit From ground lease to own land

Appraisal of added value in division

The added value in division into apartment rights is established by deducting the sum of the land values of all the apartments by the land value of the undivided building. For more information, visit Dividing, changing and merging ground lease rights.

Published: 5 March 2018Modified: 23 April 2020