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Old 26.09.2011, 13:47
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Baurecht (ground rent)

I wonder if anyone has good knowledge of the way Baurecht works here. I understand it to be a little like leasehold is in the uk, but I wonder if it really is the same.

As I understand it, in the UK when you buy leasehold property you typically pay to own the property for a period of years (say 100 years). After which the property reverts to the owner (at zero value I believe). During the period of leasehold you may pay a fee (ground rent) which can vary considerably in value (I had a 150k property in the UK with a 20 GBP/year ground rent, but I understand it can be thousands per year in some cases).

Baurecht seems to be a similar concept, where your ownership eventually reverts and during the interim period you pay Baurechtzins, which again seems to vary considerably. What is not clear is what happens at the end of the lease term. I have read that the lease is either renewed (on what terms?) or the property is forfeit, but the owner must pay something for it.

My observation is that baurecht property appears to be hard to sell - there was also another thread which suggested that on this forum. I wonder if anyone has an idea about the typical end-of-life of the baurecht - ie would the renewal likely be at the same rate, would the amount paid by the reversion owner be anything like market value ? are there rules governing this, or is it down to each sales contract ?

Any advice appreciated.
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Old 26.09.2011, 14:56
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Re: Baurecht (ground rent)

All your questions answered at: http://www.admin.ch/ch/e/rs/210/a779.html and the following articles.

Well almost all your questions...
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Old 26.09.2011, 15:23
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Re: Baurecht (ground rent)

thanks, but i skipped the course on interpretation of swiss law when i was at uni....anyone with real world advice ?
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Old 27.09.2011, 10:55
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Re: Baurecht (ground rent)

You asked whether Baurecht has a similar concept, and it is spelled out in English in the articles cited (try looking for "compensation" and "maximum duration"). Not too much interpretation required.

Of course, if you prefer ready-made answers, I'd be more than happy to give advice at CHF 440/h.
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Old 14.08.2014, 11:14
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Re: Baurecht (ground rent)

We're looking to buy a house and have come across Baurechts a couple of times now.

My German is a bit rusty but the estate agent helpfully sent a scan of the Grundbuch for the property in AG. (attached)

Am I right in thinking that the property has Baurechts until 2046 when it will need to be reviewed?

Not so worried about the cost, mostly worried about

a) whether the property will be resellable in 20 years time say with this leasehold attached
b) If the leasholder needs to be involved in any big decisions regarding the land, eg extensions, adding/removing trees etc. Half the point of buying is to make all these decisions yourself!

Thanks in advance for any insights.
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Old 14.08.2014, 11:26
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Re: Baurecht (ground rent)

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mostly worried about

a) whether the property will be resellable in 20 years time say with this leasehold attached

Personal opinion, take this as simply that:

I would not buy a property in Baurecht. I've been watching the property market in SZ, ZG, ZH-left and right coasts (the bubble markets) as well as SG for many years now and I see Baurecht properties sitting on the market for ages, in areas where anything else sells quickly. These often having to drop the price significantly to sell.

The value of a property in CH is in the land - and if you don't own the land...

There may be some exceptions, such as the Baurecht properties on the lakefront in Ausserschwyz. But how many gazillionaires are out there, willing to pay millions for a depreciating asset, which is what a house without land is? I just can't see it.

Then there is the issue of the Baurechtzins. I've seen properties where the ground rent is upwards of 25,000 pa. If you are paying that kind of money, plus the house expenses, etc., plus the mortgage - why even bother buying?

Admittedly, I come from a background where owning the land you stand on is very important - in fact, it's the fundamental reason I would make the purchase. Perhaps someone coming from a property market where Baurecht/Leasehold is more common might feel differently.

Just my 5Rp.
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Old 14.08.2014, 11:53
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Re: Baurecht (ground rent)

agree with the above. baurecht is pretty much the kiss of death when it comes to property. when i see property that is much cheaper than expected and sitting available for ages, it is usually due to baurecht.

leaseholds in england have an important feature: the right to extend the lease* at a reasonable price.

*see details
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Old 23.09.2020, 17:11
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Re: Baurecht (ground rent)

we are in a similar situation now. viewing a property to buy that is in baurechts. does anyone know what rights we would have as the owner of the apartment once the lease runs over.


the interest (baurechtszins) is very low and the lease has still a good 40 years but still we would like to know what rights do we have (in the worst case) at the time of ending of the lease.


cheers
happycreature
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Old 23.09.2020, 17:18
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Re: Baurecht (ground rent)

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the interest (baurechtszins) is very low and the lease has still a good 40 years but still we would like to know what rights do we have (in the worst case) at the time of ending of the lease.
This is still valid:

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All your questions answered at: http://www.admin.ch/ch/e/rs/210/a779.html and the following articles.

Well almost all your questions...
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Old 24.09.2020, 17:25
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Re: Baurecht (ground rent)

Thanks for reminding about the link. Infact it has all the answers. so it does not look that bad to buy a house with the baurecht. it is only that one has to assess carefully what they are getting into. as far as I can gather from the link, summary is


1. you can buy such an apartment but must continue paying the baurechtzins (interest for the lease) until the end of the lease - this is clearly an additional cost on top of the mortgage costs.
2. at the end of the lease, the land owner gets back the land along with the houses built on it and the land owner must fulfill all the claims (basically the mortgage amount and your downpayment) on those houses built on the land. I understand it in a way that if the prices have gone up, the land owner will sell the house at a higher price and only compensate the existing owners up to the cost paid at the time of purchasing. so if you bought it for 1mil, the land owner will pay you 1 mil even if in the market he can sell the property for 2 mil. so as a house owner you cannot benefit from the price increases if you buy an apartment with a baurecht


cheers
happycreature
 

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