Leasehold
Service description
Pursuant to Section 1 ErbbauV, the heritable building right includes the right to erect one's own building on another person's land. This breaks with the principle that ownership of a building and ownership of a plot of land always belong together. The provisions of the Erbbaurechtsverordnung (ErbbauV) thus constitute an exception to Sections 93 and 94 of the German Civil Code (BGB ) and Section 946 of the German Civil Code(BGB), where ownership of the land also includes ownership of the building.
Example:A receives a heritable building right for 99 years on the land of B. He can build the long-desired single-family house on it and saves the high land price. To compensate for this, he regularly pays B the ground rent and the public charges and levies. At the end of the contract period, i.e. after 99 years, B or his heirs receive the land with the building back. However, B or his heirs must compensate A or his heirs for maintaining the building.
The essential content of the heritable building right is the development of the land. The type of development does not have to be determined in detail when the heritable building right is created. It is sufficient if the heritable building right holder may erect any building permitted under building law (BGH, 22.04.1994 - V ZR 183/93).
The heritable building right always comprises the entire building. The restriction of the heritable building right to parts of the building is inadmissible according to § 1 para. 3 ErbbauV. On the other hand, the heritable building right can only refer to a part of the land. The creation of a partial heritable building right then requires entry in the land register, cf. BayObLG decision of 10.03.2004, 2Z BR 268/03.
It is also possible to create an overall heritable building right, i.e. a heritable building right to several plots of land.
Pursuant to Section 30 of the German Condominium Act (WEG ), a heritable building right can also be granted as a residential heritable building right, in which case the construction of condominiums is made possible for the property. The residential heritable building right then corresponds to condominium ownership. The heritable building right is granted for 99 years.
The same rules apply to the owner of the right to build an apartment as to other apartment owners. Without the consent of the other co-owners, impairing structural alterations are not permissible, cf. also OLG Düsseldorf - 30.07.2005, ZfIR 2004, 816.
As a rule, an annual ground rent of approximately 5% of the value of the land is payable for the ground lease.
The longest contract term is 99 years. However, an option for extension can be agreed.
Legal basis
Ground Lease Ordinance (ErbbauV)