Buying out the leasehold on your home

We would like to inform you about buying out the ground lease on your home. Have you already bought out your perpetual ground lease?
Count your blessings. If you haven't done so yet, we would like to inform you of an important message.

Experts advise buying out perpetual ground leases Previously, we, the MVA and Erfpachtbelang, advised applying for a perpetual leasehold in any case. With a perpetual leasehold, you can choose from the following options:
Buy out in one go;
Or lock in, pay an annual ground rent, and buy out later. However, simply locking in a perpetual leasehold appears to be an unfavorable choice.

Lump sum payment including inflation
If you have only fixed the ground lease and decide to buy it off later, the Local authority will calculate Local authority lump sum payment with inflation.
Please note that the Local authority inflation plus a surcharge of 2.5%. This is calculated retroactively from October 1, 2017.
That is already 18.5% more if you want to buy out this year. So if you do not buy out, the buyout amount will be 18.5% higher Immediately when you sign at the notary. In 10 years, the buyout amount will double, and with rising inflation, it will increase Immediately faster.

Our advice
Are you still going to the notary to register or buy out your ground lease?
Option A) For Sale entire ground lease in perpetuity.*
Option B) For Sale ground lease at the end of the term and continue to pay the current ground rent until then.

* You could consider borrowing the money from the bank, family, or your private limited company. Borrowing is now cheaper than the indexed interest rate currently charged by the Local authority.
Do you have the financial means? At the bank, you pay interest on your assets, and you may also pay capital gains tax of 1.4%. By paying the lump sum, you no longer pay interest or capital gains tax on this amount.

Have you already been to the notary?
Option A) Have you already bought out, everything or from the end of the period? Then you don't need to do anything else, consider yourself lucky.
Option B) You have only 'clicked'. Now Immediately buy out (and take into account 18.5% additional costs).

Have you recently purchased a home?
Do you still need to visit the notary for the transfer of ownership, or have you been the owner for less than six months? Send Immediately your leasehold details Immediately email and we will help you further.
All in all, there are a lot of considerations and choices to make. Do you need help with this? Feel free to send us an email.