Purchase of a leasehold property - price negotiable?

Hello

Isn't it the case with leasehold that the property reverts to the owner of the land at the end of the leasehold contract without compensation? That would be in 36 years. Vonovia is quite stupid if they sell the land. So: grab it. No matter what.

In almost 100% of all contracts, there is compensation at the end of the term (legally 2/3 of the value for underprivileged population groups - as stated in the law), which is usually between 2/3 and 80%, or an option to purchase or a right to extend. In my more than 20 years of real estate financing, I have never seen an expiration without compensation (if I think about it carefully, I have never seen an expiration with compensation either). Except in commercial properties, where the leasehold right was only based exactly on the lifespan of the building.

Isn’t it the case with leasehold that the property passes into the possession of the property owner without compensation after the leasehold contract ends?

Who do you mean by that? The homeowner is the one who owns the house and remains so. Except after termination of the leasehold, the leaseholder buys the house.

I don't quite understand why anyone would sell their land below the [Bodenrichtwert] at all?? I only know of prices well above [Bodenrichtwert]. Personally, I would never dare to negotiate any lower than that, but would buy very, very quickly before they change their mind...

Hello

Isn't it the case with leasehold that the property reverts to the owner of the land without compensation at the end of the leasehold contract? That would be in 36 years. Vonovia is pretty stupid if they sell the land. So: grab it. No matter what.

Steven

Not always. That's why I'm asking.

Well, Vonovia compares its earnings value calculation with the annual administrative costs or the costs incurred over 36 years in the event of a takeover and corresponding sale. Renting out a single-family house is rather not Vonovia's business model. Vonovia has a return on equity of 5.65% (2019). This means that with €65 per year, the property should be worth €41,415 in order to achieve the same or better return with the property as with other investments of the company.

Who do you mean by that?
The homeowner is the one who owns the house and remains so. Except after the termination of the leasehold, the leaseholder buys the house.

The house belongs to the landowner, unless otherwise agreed. I would expect at most a minor compensation since nothing was contractually regulated.