Upcoming house purchase: buy with or without leasehold rights?

Hello everyone,

we want to buy a house. We have already viewed it and everything immediately matched our wishes and ideas (location, layout, condition).

The single-family house was built in 1958, has 130m² of living space, 1200m² of land (70€ / m² BRW). Cost: 100k€ (house only)

However, the house is on a leasehold property. The leaseholder is the state of NRW and the contract is valid until 2052 (we could take it over with the current conditions). The leasehold fee is a staggering 141€ per year!

We have little equity but a relatively good household net income (about 5000€).

We have numerous financing appointments coming up (house bank, broker, etc.) and are wondering which path we want / can / should take.

Either we finance the 100k€ and pay the very low leasehold fee until 2052 (idea: save "on the side" and buy the land after the contract expires) or we buy the house (100k€) and the land (84k€) directly and then finance 184k€.

What do you think? What makes more sense?

Best regards

Erbpachtgeber

Erbpachtgeber have a right to participate (also due to land charge registrations, etc.). I know a few cases involving church land; there, <80/90% financings or higher are often rejected or excluded.

and after the contract expires to buy the land) or we buy the house directly (€100k) and the land (€84k) and then finance €184k.

Are these options coordinated with the Erbpachtgeber, or anchored in the ground lease contract?

Leaseholders have a right to have a say (also because of land charge entries etc.). I know a few cases with church land; there, <80/90% financing or more is often rejected or excluded.



Are these options agreed with the leaseholder, or anchored in the lease agreement?

Yes, according to the seller (private), it is contractually regulated that it is possible to buy the property.

Have you already seen, read, and understood the leasehold agreement?

Have you already seen, read, and understood the ground lease agreement?

No, not yet... But that should not be the subject of my question. I assume that what the seller says is true.

No, not yet... But that should not be the subject of my question. I assume that what the seller says is true.

We have little equity a

Leaseholders have a say (also because of land charge entries etc.). I know a few cases with church land; they like to reject or exclude <80/90% financing or more.

Banks are also generally not really open to little equity and leasehold issues.

The only thing that helps you is to keep knocking on doors.