Buy and renovate a semi-detached house from 1959? Suggestions/tips welcome

There are no good agreements for the leasehold beneficiary. As a real estate banker, I would definitely not buy the property.

The amount of the ground rent can be quite freely set according to current market conditions. So see my calculation above. With €450 per month, it would already be very cheap and could still be massively increased a year later.

Compensation payment only for 2/3 of the value of the structures, the "gemeinen Wert" ==> market value. Thus, a loss of 1/3.

P.S. By the way, you have no right to extend the term of the leasehold. Only the owner can do that!

The amount of the ground rent can be set quite freely according to the current market conditions. So see my calculation above. With €450 per month, it would already be very cheap and could still be massively increased a year later.

So if you already say that €450 is very cheap and there is no problem constantly raising the interest, then we really have to think carefully about the purchase. Thank you very much for the help, it’s really great to be able to read another opinion and then maybe approach the matter more critically. We want to have our own home and not pay someone money for the apartment until the end of our days. And if we are older and still paying €1000 per month as interest... maybe that’s not what we should do.

I didn’t understand from the contract that we are not allowed to renew it, I thought both parties could. It’s of course shit if in 2058, the orphanage doesn’t renew it and we lose one third.

But I’m happy to hear what others think about it. That’s really helpful. Thanks.

I did not understand from the contract that we are not allowed to extend it, I thought both parties.

This is stated in the mentioned paragraph of the Heritable Building Rights Ordinance – the owner must pay you 2/3 of the house value after expiration. He can avoid this payment if he offers you an extension of the heritable building rights contract. However, only for the expected "lifespan" of the house, not again for 99 years.

The alternative for you is to buy such a property. But that costs half a million euros for the land plus purchase incidental costs (in the location you are looking for). Could you finance the half million for €5,400 per year? That would suffice for 1% interest. That is why I say that the heritable building right is also cheap at €450 per month.

There are no good agreements for the leasehold beneficiary. As a real estate banker, I would definitely not buy the property.

The amount of the ground rent can be set quite freely according to the current market conditions. So see my calculation above. With €450 per month, it would already be very cheap and could still be massively increased a year later.

Compensation payment only at 2/3 of the value of the structures, the "common value" ==> market value. Thus a loss of 1/3.

P.S. By the way, you have no right to extend the leasehold period. Only the owner can do that!

I see it exactly the same way: From my point of view, there are two main negative points. 1. The leasehold rights cannot be extended by you - only by the rights grantor. 2. They then only pay 2/3 of the house value: That is unusual and extremely negative for you.

If you have any alternatives: Take them. Personally, I would NEVER do this. The risk would be too great for me.

I think under the circumstances I would not buy it. The financial risk and the financial planning uncertainty would not be worth it to me. I would rather keep looking and buy something that one can truly call their own without any ifs or buts.

As a real estate banker, I would definitely not buy the property.

As a non-banker, neither would I.

I mean, I know the plight of the residents of the "Top 5" big cities. But this building is a fixer-upper! Maintained, yes, but still in need of a complete renovation. Asking for €610,000 for it is an outrage, nothing else, and solely due to the location, which you only rent, not buy.