(edit title) What does it mean? Förening does not own the land Options

[Gchinese]

Hej, I am thinking of buying an apartment and have been to this one that I like it. But the realtor said förening does not own the land. I am not sure what this could mean? Could there be a raise of fee due to the fact that they have to re negotiate the rental of the land on which the apartment standing or anything? Should I be worried about this one?

[Yorkshireman]

Land can either be Freehold (you own it when you buy the property) or leasehold (someone else owns the land the property is on).

It sounds like the BRF building is built on land that is leasehold, which means they do not own it, but rent the land. There will be a contract with the landowner, and every year the BRF will have to pay a fee for using the land. Normally these contracts may be for periods of 10 years at a time, and are re-negotiable when coming to the end.

The bad thing is, the BRF does not own the land... which means sooner or later maybe the land owner wants to use it themselves, or do something with it?

Some leaseholds, around Stockholm for example, have a clause that when the contract terminated the leaseholder had to purchase it, which could mean a significant investment required, depending upon location and land prices, others give the leaseholder the 1st right to buy...but the owner could sell to others!

Personally, I would avoid if possible the leasehold properties.

[redblue]

Its calld tomträtt (leasehold of site), which gives the right to occupy the property (land) without owning it. The owner, usually a municipality, is leasing the property for a long, indefinite period. You pay an annual fee, called tomträttsavgäld (ground rent). The contract is extended after 60 years, and then every 40 years. A lease may be terminated only by the government or the municipality, a land owner can not terminate the tomträtt. Tomträttsavgälden is based on the assessed land value.

[Gchinese]

Thanks for the information. Just wondering if this is common? Since I seem to never heard any problems due to any owner of the land where some apartments stand on wants to take it back or raise the rent, but I really don't know much in this regard. Are you saying most BRF owns the land? Should I always check if they own the land when purchase the apartment?

For purchasing of villa, I understand this is a big concern since you don't want to take your house with you when you move but it is hard to think that an apartment budiling of some 40 to 80 apartments stand on will have to worry about this too.

p.s thanks for the info. I now choose to go further with other apartments