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You can sell a leasehold right, but the landowner may stipulate in the lease conditions that transfer requires his consent. If he refuses without reasonable grounds, the subdistrict court may grant substitute consent (Article 5:91 of the Dutch Civil Code).
What is leasehold?
With leasehold, you have the right to use and build on land belonging to another. You are the owner of the building and the leasehold right, but not of the land itself. For this use, you usually pay a fee, the ground rent.
Consent for transfer
The leasehold right is in principle transferable, for example upon the sale of the home or business premises. However, the leasehold conditions may stipulate that the landowner must give permission for the transfer or division. In this way, the owner retains control over who uses his land.
What conditions may the owner impose?
The landowner may attach reasonable conditions to his consent, but may not unreasonably hinder the transfer. If he refuses consent without reasonable grounds or imposes unreasonable conditions, the leaseholder may request substituted consent from the sub-district court (Article 5:91 of the Dutch Civil Code).
Be careful when buying and selling
If you are buying or selling a leasehold right, read the leasehold conditions beforehand: the ground rent, the term, the consent requirements, and any restrictions. Unexpected conditions can significantly affect the value and marketability.
Frequently Asked Questions
Can the landowner refuse the transfer of my leasehold?
Only on reasonable grounds. If he refuses unreasonably, you can obtain substitute permission through the subdistrict court (Article 5:91 of the Dutch Civil Code).
What conditions may the owner attach to permission?
Reasonable conditions that do not unreasonably complicate the transfer. Unreasonable demands do not hold up.
What should I look out for when purchasing a leasehold right?
On the ground rent, the term, the consent requirements, and restrictions in the leasehold conditions. These also determine the value and marketability.
Questions about leasehold or real estate?
Our legal experts review leasehold conditions and guide the transfer. View our real estate law– or property law– team, or schedule a free consultation.
