Paying off the leasehold in perpetuity

Are you a leaseholder with a ground lease contract after 1986? If so, you can request to pay off the leasehold in perpetuity. You will then no longer have to pay ground rent.

Why pay it off?

    Leasehold is the right to use land owned by the municipality for a certain period in return for paying ground rent. The municipality then remains the owner of the land.

    Reasons for wanting to pay off the ground rent are:

    • You will no longer have to pay ground rent.
    • You no longer receive a 5-year revision of the ground rent percentage.

    Conditions

      To pay off the leasehold in perpetuity, the municipality has stipulated a number of conditions which you must take into account:

      Leasehold contract after 1986: To pay off your ground rent payment, you must have a leasehold contract concluded after 1986.

      Leasehold contract before 1986: Do you have a leasehold contract from before 1986 and does you leasehold contract expire within 15 years? If so, you must first apply for a reissue on request. For more information, visit Leasehold contract expires within 15 years.

      Apply

      Apply to pay off ground rent

      Fees

      • You make a one-off payment of the land value of your right of ground lease and an amount for buying off the administration costs and possibly any loss in interest. For the rates, visit Ground lease conditions.
      • The buy out is again recorded in a notarial act or an obligatory agreement because your leasehold contract will change. The leaseholder pays the costs of this act/agreement.
      • If you incorporate the costs of paying off the ground rent in your mortgage, you may deduct the interest over the settlement amount in your tax return.

      How long does it take?

      The municipality will investigate whether your right of ground lease is eligible to be paid off. If so, you will receive an offer and information about the procedure and the costs. This takes 4 to 6 weeks.

      Also see: Ground lease