Buying off ground lease: a new chance for the Amsterdam lease transfer scheme
As of November 28, 2022, leaseholders in Amsterdam who are still in the old leasehold system can make use of the leasehold buy off scheme. This is the last chance to switch to perpetual leasehold with the favorable conditions before January 8, 2020. Applications can be submitted until August 1, 2023 via the municipality’s transfer portal. The municipality of Amsterdam will inform all stakeholders.
If the home was purchased after 2020 and no transfer request has been submitted, the scheme cannot be used.
The choice for perpetual leasehold is attractive for a number of reasons. For example, because the calculation is based on the lowest WOZ value from 2015 or 2016. Since those years, the WOZ value in Amsterdam has risen sharply. An old – read lower – value is also used for the neighborhood street quote (BSQ), namely that from 2017 (view the BSQ values on a map here). Finally, the switching premium of 35% is also used, where 25% has currently been set.
Buying off ground lease and the consequences for your mortgage
Some mortgage lenders require prior approval if you want to make the switch to perpetual ground lease. It is also possible that a mortgage lender requires a new mortgage deed. A&H Finance can tell you exactly what the consequences will be for your mortgage and what actions need to be taken.
Transfer or refinance
You can refinance the amount of the commutation through a new mortgage or transferring your current mortgage. For this it is good to have your financial situation mapped out by our advisers. Based on this, we can tell you exactly what is the best option for you. Especially now that mortgage interest rates have been rising for some time, it is good to map out all the options and conditions. Contact us for a first meeting and visit our office in Amstelveen.
If you finance the commutation in a new mortgage, the interest is tax deductible under certain conditions. The annual payment of the ground lease is also currently deductible. Our partner TaxSavers can help you with the correct income tax return.
We are happy to advise you!
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