Heritable leasehold property including new construction

Try selling your house on a leasehold, say listed for €400,000, and explain to the buyer that they cannot get a full mortgage on it. Former neighbors found that backfired on them; the sale was significantly more complicated.

I also don't like leasehold... If everything else around it had been right, I probably would have swallowed the bitter pill, but when you have the choice and the necessary cash, most people prefer freehold plots, as the discussion also shows.

Is that rational... Probably not emotionally, it’s just not completely your own, but a part is rented... Does that have an impact on living in the house... No, if you don’t have an emotional problem with it. I do, ...why? I can’t rationally explain it

Try selling your house on a leasehold, listed for, say, €400,000, and then explain to the buyer that they can't get a full mortgage on it.

I still don't understand that. Where is the problem? Leasehold rights are everyday business.
Try telling buyers of full ownership, who suddenly have to pay €600,000 instead of €400,000 because they also have to buy the land. They have to bring significantly more equity. You actually have more potential buyers for leasehold rights than for full ownership, since the equity requirement is significantly lower!

Former neighbors got burned by that; the sale was considerably more complicated.

I currently live in a housing complex under leasehold. Buying and selling happens completely normally here. Even for apartments! And it’s financed as well, by the way.

I also don't like leasehold

Correct, it's about the "feeling". In reality, there is no difference to full ownership in terms of usage.

I still don't understand that. Where is the problem? Heritable building rights are everyday business. Tell the buyers of full ownership, who suddenly have to pay €600K instead of €400K because they also have to buy the land.

But that is not the initial situation. The initial situation is a real estate listing for €400K. Interested parties respond who are looking for real estate in this price range. They are then told that they need 20% equity because the heritable leaseholder does not allow it otherwise. That has to fit into the buyer’s plan. This happened in the former neighborhood, where grandma moved out of the house and several young interested parties dropped out because they don’t have €80K in cash. They have additional costs and a kitchen in cash in their account.

They are then informed that they need 20% equity because the ground lease holder does not allow it otherwise

I have never seen anything like this in 25 years of real estate financing (and hundreds of ground leases), that the ground lease issuer makes such requirements. He only has to agree to the sale (and he really cannot prevent that). Otherwise, the property is considered full ownership.

This happened in the former neighborhood, where grandma moved out of the house and multiple young interested parties dropped out because they didn't have 80,000€ in cash. They have ancillary costs and kitchen in cash in their account.

I would bet my hand that the 80,000€ does not depend on the wishes of the ground lease issuer. The only possibility that occurs to me is that the ground rent must be paid in full in advance and in the case you described, an increase was possible due to the sale, which then also had to be paid in advance.