Hello,
I’m new to this forum and have browsed through the search a bit, but haven’t quite found what I’m looking for.
Here’s the topic:
We (a young couple in our early 30s, both working) are currently looking to buy residential property (condominium or house). We are really new to this and feel a bit overwhelmed by the whole process. The internet offers a thousand different opinions.
We currently have an offer and would like to hear your opinions on it, as well as learn about experiences with this kind of situation and what additional costs we should expect.
- End-terrace house on a leasehold property
- Leasehold term: 75 years
- Construction start next year
- Plot size about 400sqm (4300 sq ft)
- The leasehold land belongs to the Catholic Church and is located in Saxony, near Leipzig
- I have a leasehold contract for a comparable property from the same project. It states that the annual ground rent is €2.50 per sqm (about $2.70 per 10.8 sq ft)
- No commission fee; property transfer tax and notary fees must, of course, be paid
- The total cost should be around €200,000–220,000 (about $215,000–235,000)
Now the questions:
- What are the general experiences with leasehold properties?
- What ongoing monthly or annual costs can we expect in addition to the mortgage payments?
We have calculated various loan options and ideally do not want to take on more than €260,000 (about $280,000) in credit. Since it is difficult to find something within this price range in Leipzig and the surrounding area, this seems like a suitable alternative at first glance. However, many acquaintances advise us against leasehold.
Therefore, I hope to get some independent opinions from you.
Best regards from Leipzig
I’m new to this forum and have browsed through the search a bit, but haven’t quite found what I’m looking for.
Here’s the topic:
We (a young couple in our early 30s, both working) are currently looking to buy residential property (condominium or house). We are really new to this and feel a bit overwhelmed by the whole process. The internet offers a thousand different opinions.
We currently have an offer and would like to hear your opinions on it, as well as learn about experiences with this kind of situation and what additional costs we should expect.
- End-terrace house on a leasehold property
- Leasehold term: 75 years
- Construction start next year
- Plot size about 400sqm (4300 sq ft)
- The leasehold land belongs to the Catholic Church and is located in Saxony, near Leipzig
- I have a leasehold contract for a comparable property from the same project. It states that the annual ground rent is €2.50 per sqm (about $2.70 per 10.8 sq ft)
- No commission fee; property transfer tax and notary fees must, of course, be paid
- The total cost should be around €200,000–220,000 (about $215,000–235,000)
Now the questions:
- What are the general experiences with leasehold properties?
- What ongoing monthly or annual costs can we expect in addition to the mortgage payments?
We have calculated various loan options and ideally do not want to take on more than €260,000 (about $280,000) in credit. Since it is difficult to find something within this price range in Leipzig and the surrounding area, this seems like a suitable alternative at first glance. However, many acquaintances advise us against leasehold.
Therefore, I hope to get some independent opinions from you.
Best regards from Leipzig
I have nothing further to argue or prove against that, so I’ll leave your statement as it is. Maybe it was a special case. I don’t know the details.
My impression is that lending limits are common. I just did a quick Google search and found similar cases.
Could it be that you are regionally based, so the typical ground lessor there does not have such rules?
My impression is that lending limits are common. I just did a quick Google search and found similar cases.
Could it be that you are regionally based, so the typical ground lessor there does not have such rules?
N
nordanney17 Jul 2019 15:06guckuck2 schrieb:
Are you perhaps regionally rooted, so that the usual ground lease provider there doesn’t have such rules?No, we provide financing nationwide. Just today I received a brand-new ground lease contract from Stuttgart. There are no restrictions there either. Last week, I received one from the Ruhr area (but for an office building) – there the ground leaseholder wanted the ground lease fee paid in advance – but it was still cheaper than purchasing.