Upcoming house purchase: buy with or without leasehold rights?

(1) Does the hereditary building right expire due to the passage of time,...

Basically, one has already taken action before the expiration (by simply dealing with options with the contracting party before the deadline) and prevents this repurchase.

As part of the hereditary building right, agreements can be made regarding the amount of compensation and the manner of its payment as well as about its exclusion.

This means that there are individual contracts that one should take a look at.

In this respect, one should first discuss the contract here and not legal texts

(by dealing with options with the contractual partner before expiration) and averts this repurchase.

Of course; and only then realizes that one is in a potentially very poor negotiating position. The leaseholder theoretically does not have to do anything unless something else was agreed (e.g. no right of renewal was granted).

can compensation then be contractually excluded?

Theoretically yes; practically not, because case law has apparently spoken on this. The few contracts I know explicitly mention the 2/3.

For the OP , however, three aspects will actually be important.

- Is only a right of first refusal agreed, or is it actually allowed to be purchased at any time? Some people tend to confuse that.

- And whether something like the following is stated:
"Encumbrances on the leasehold may not exceed 90 percent of the construction costs excluding the architect's fees."

- And how the extension of the leasehold for the affected property is regulated. In other words, is there at least a right of renewal? (which alone means nothing; one could circumvent that by not agreeing on a right of first refusal and not wanting to continue operating the property as leasehold (layperson’s opinion).

Therefore, one should first discuss the contract here and not legal texts

This discussion so far should already make clear that leasehold can be a field full of mines. Especially if the seller cannot provide this initially.

and depending on the actual arrangement, it is not worth 35 years. Therefore, also have this professionally reviewed after disposition.

Of course; and only then do you realize that you are in an extremely poor negotiating position. The ground lessor theoretically does not have to do anything unless something else has been agreed upon (e.g., no right of renewal has been granted).

Just quickly:
from whom do you still get something for your 80- or 100-year-old house, other than just the value of the land?

If that is in good condition or completely renovated, or if you had built a new house on it after 70 years...

and even if not. It is still "your" house; and then suddenly no longer.

Oh dear... I can already tell that the topic of heritable building rights is not as trivial as it seems.

To clarify again in my case:

- The seller inherited the house from his deceased father and now wants to sell it privately
- The owner of the land is the state of NRW

I asked the seller to request the heritable building lease contract from the state of NRW. He already had contact with the state since he needs their consent for the sale of the house. However, the responsible clerk is on vacation and will only be reachable from Monday.

Of course, I don't know exactly how much the house alone is worth. I don't necessarily need an expert appraisal now, because...

1. The house is worth the price to me (The market currently determines the sale price, not the appraisal).
2. The bank itself determines the value for financing purposes.

Does anyone happen to know which criteria the bank uses for valuation? Can you roughly calculate the value yourself?

As an example: A friend recently bought a single-family house. Built in 1950, 135 sqm, good condition (but still has the old windows, etc.). Value of the house according to expert appraisal: €88,000

What exactly will happen with you; we shall see. One should just keep in mind that leasehold is not a pony farm concept.

I asked the seller to inquire about the leasehold contract with the state of NRW.

Very good

Of course, I don't know exactly how much the house alone is worth. I don't necessarily need an appraisal now, because..

The bank will do that. Don't worry. They will determine the value. Especially the remaining years of the leasehold will not drive it up.

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It will be interesting to hear who among the banks or advisors will even make an offer or do the work for it.