Good day,
I hope I have posted in the right subforum.
I am planning to build a house on my own land in Hessen at some point.
I often encounter the same issue:
I do not want to acquire a leasehold property (ground lease). The land should belong to me "completely."
Some listings also mention that the property is leasehold.
Here are my specific questions:
Can a purchased plot of land that was NOT acquired as leasehold still be subject to expropriation?
How can you tell if a property might be leasehold, other than it being explicitly stated in the listing? I don’t want to waste valuable time in inquiries only to later realize that although it is not literally mentioned, there is some kind of "code" or other indication in the listing that experts recognize as a leasehold reference, meaning it actually is leasehold.
How does property law generally work in Germany? Does it vary from state to state or is it uniform?
Can it generally be said that property rights in Germany are better or worse compared to neighboring countries such as Austria, Switzerland, or France?
And the most important question: how can I be sure that the land I purchase belongs solely to me?
Best regards
alwayssearchin
I hope I have posted in the right subforum.
I am planning to build a house on my own land in Hessen at some point.
I often encounter the same issue:
I do not want to acquire a leasehold property (ground lease). The land should belong to me "completely."
Some listings also mention that the property is leasehold.
Here are my specific questions:
Can a purchased plot of land that was NOT acquired as leasehold still be subject to expropriation?
How can you tell if a property might be leasehold, other than it being explicitly stated in the listing? I don’t want to waste valuable time in inquiries only to later realize that although it is not literally mentioned, there is some kind of "code" or other indication in the listing that experts recognize as a leasehold reference, meaning it actually is leasehold.
How does property law generally work in Germany? Does it vary from state to state or is it uniform?
Can it generally be said that property rights in Germany are better or worse compared to neighboring countries such as Austria, Switzerland, or France?
And the most important question: how can I be sure that the land I purchase belongs solely to me?
Best regards
alwayssearchin
alwayssearchin schrieb:
Or whether in neighboring countries property rights below the earth’s crust are significantly stronger than in Germany.I have no idea what you mean by the "earth’s crust," but as a landowner, you do not own the airspace above your property, nor everything that lies beneath the ground. Mineral resources (below 25m (82 feet)?) fall under mining law and are not yours. Oil found on your property is obviously not yours either.
Even a chest of gold that you happen to find on your paid land will have to be partially or fully surrendered.
N
nordanney8 May 2020 11:02alwayssearchin schrieb:
In densely populated areas, even leasehold land commands a price that would almost be considered a full land price just 50km (30 miles) away. In urban areas, the price per square meter is often ten times higher than what you pay in rural areas. Simply put: urban area = expensive, undeveloped land = cheap.
alwayssearchin schrieb:
Well, I hope that with what I consider a secure job, I will be able to cover the costs over several decades. Naturally, I wouldn’t jump into anything without equity… I believe this issue should (hopefully) be settled from that perspective. You should have equity regardless of the type of land ownership (freehold, shared ownership, leasehold). If you cannot repay your loan, any property—regardless of its legal form—can be lost through foreclosure.
alwayssearchin schrieb:
My main concern is that once everything is fully paid off and secure, the government might decide to build a road through my garden or expropriate part of my land for possible construction, so that only the construction company profits, which wouldn’t really be an expropriation in the true sense; that is, for the public good (which would still be annoying of course). The probability of this happening is zero. The legal hurdles are extremely high, and you would “only” lose your land and house—regardless of ownership type—in exchange for compensation at market value. So there is no financial loss. Also, highways or rail lines are generally not constructed directly through residential neighborhoods in cities or towns.
alwayssearchin schrieb:
This is especially why I want to understand—in light of neighboring countries—where, for example, expropriation is significantly harder to enforce, regardless of the authority involved. The answer is simple. Under German law, you are probably one of the best protected property owners in the world. If something is regulated extensively and legal processes take years, it’s in Germany. You know how slow everything moves here, since even the smallest issues are regulated.
You might want to ask why things are easier in many other countries instead.
What exactly is your goal? Building, buying, or just satisfying curiosity? The purpose behind your questions isn’t clear to me.
alwayssearchin schrieb:
Although I have to say that especially in urban areas, a price is charged for leasehold that, 50 km (30 miles) away, would almost be considered a land purchase price. In terms of a house on leased land in a big city being roughly the same price as a house on freehold land in the middle of nowhere, yes. But it shouldn’t be confused that a ground lease price is the same as a purchase price.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
HilfeHilfe8 May 2020 20:57alwayssearchin schrieb:
Hello,
I would like to thank you in advance for your responses.
So far, I have understood that the price can generally indicate whether a leasehold is involved. Especially in urban areas, I must say that even for leasehold land, prices are asked that would almost be equivalent to the cost of freehold land just 50 km (30 miles) away.
Since there were some follow-up questions, I would like to answer them so that I can consider this topic concluded:
Well, I hope that with what I consider a secure job, I will be able to cover the associated costs over several decades. I certainly wouldn’t rush into anything without equity… I believe this issue should (hopefully) be out of the question at least from this perspective.
My main concern is that once everything is fully paid off and settled, the government might come along and decide to build a road through my garden or expropriate additional land for construction purposes. This would result in the profit going only to the construction company, rather than being a genuine compulsory purchase for the public good (which would, of course, also be frustrating).
In this context, and regarding the question about neighboring countries, it is important for me to understand where, for example, a compulsory purchase—by whatever authority—is significantly more difficult to enforce.
Or whether neighboring countries offer noticeably better property rights below the surface than here in Germany. I am not an expert here, which is why I initially asked about property rights in neighboring countries in general.
Best regards,
alwayssearchinSuggested approach: move 50 km (30 miles) away and buy freehold land.
We are building on a leasehold basis. We thought about it for a long time beforehand. The owner is a church community. The notary who handled the process and has managed several leasehold contracts explained that the legal principle is valid. However, in his entire career, he has never seen it actually enforced.
It is also important to consider that a fair leasehold contract includes many safeguards to prevent the owner from losing the property.
It is also important to consider that a fair leasehold contract includes many safeguards to prevent the owner from losing the property.