When you buy a house, it is usually on private land. But sometimes the land with the property on it remains the property of the owner. As a buyer, you only receive the user right, the so-called ground lease right. For this you pay a fee ‘the canon’ to the owner. You must also comply with the ground lease conditions.
Leasehold is the right to use a piece of land and the living space on it. The land containing the dwelling remains the property of the leaseholder, or the owner. This is, for example, the municipality, a housing association or Staatsbosbeheer. The leaseholder pays an annual fee to the owner for this right of use. We call this reimbursement a canon.
If a seller wants to sell a leasehold living space, he must clearly state that it concerns leasehold. For example, the Funda website states the characteristics of the property or the leasehold. The deed drawn up by the notary when the seller got the living space (the deed of delivery) also states whether it concerns a leasehold. This is of course also mentioned in the purchase contract.
Leasehold with building rights
Sometimes a building right is linked to the leasehold. Then as a buyer you are the owner of the property and the leaseholder is the owner of the land. At the end of the lease, the associated building right also ends. As a result, the leaseholder also becomes the owner of the home. In principle, he must then compensate you for the value of the home.
In the case of leasehold, a number of rules apply, drawn up by the leaseholder. These are the lease terms. The lease terms are laid down in the deed of issue in leasehold. Sometimes, for example in the case of a municipal ground lease, there are also ‘general ground lease conditions’, which are contained in another notarial deed. The deed of issuance in leasehold then refers to those general lease terms. Meijer Notarissen is happy to assist you in explaining leasehold conditions. We assist you with impartial and expert advice.