The leasehold model is enshrined in law in Germany and has a history stretching back over 100 years. The model is currently experiencing a renaissance and is being promoted politically, with the result that heritable building rights are also experiencing increasing market penetration in Germany and are increasingly moving out of the niche segment.

This development is also to be expected because the affordability of buildings has improved as a result of an amendment to the law in 1994. Accordingly, ground rents remain in the land register even in the event of a forced sale, which leads to higher mortgage lending values for the buildings. As a rule, our leasehold contracts achieve similarly high LTVs for the building as full ownership.

In the meantime, a market analysis has established that the general market trends also apply to buildings / leaseholds. Internationally, leaseholds are already widespread in countries such as England, the Netherlands and the USA.