Appropriate lease for building land?

  • Erstellt am 2021-05-26 07:45:33

Seven1984

2021-05-26 07:45:33
  • #1
Hello everyone, I have a second building plot. My neighbor is interested in possibly building a larger garage for construction machines etc....

My idea would be that he builds the 100m² garage there (in coordination with me as I live right next door) and pays a lease. The land value of the plot is about 90,000 euros. I have zero experience and not even a feeling for it: What would be an appropriate lease?
 

Osnabruecker

2021-05-26 08:31:59
  • #2
That whole thing is probably meant for the long term, right?

Your neighbor surely won't build a garage on your property at his own expense and the contract will expire in 2 years.

Is leasehold land rights an option for you? Just google it and read up.
 

Nordlys

2021-05-26 09:30:29
  • #3
Look up ground lease. Something like that will exist. 3% of the land value as annual rent. 60 years duration. The usual, basically.
 

Seven1984

2021-05-26 11:45:32
  • #4
Thank you all, that's roughly how I envisioned it and thanks for the benchmark, but maybe to keep it clean I'll build the garage and then rent it out regularly, we'll see. Since the plots are not divided, I think that will be unnecessary effort.
 

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