Expiring Leasehold Rights In Amsterdam

Leasehold rights and ground rent adjustments

A leasehold right grants the holder the authority to possess and use immovable property owned by another party. In return, the bare owner may require the leaseholder to pay a recurring sum – the ground rent (canon) – and may impose conditions on how the property is used. Ground rent is often a subject of discussion and may be adjusted for example in the event of a building transformation, a change in the designated use or an expansion of the floor area, the expiration of an administrative period or a switch to a new system (such as perpetual leasehold (eeuwigdurende erfpacht)).

Before a new administrative period (tijdvak) begins, the municipality informs the leaseholder in writing of the applicable new general terms and conditions, the land value (grondwaarde) and the revised ground rent (in Amsterdam referred to as canonherziening einde tijdvak or CHET). The land value is based on the municipality's land pricing