Land Lease Property
When selling a property located on rental land, the land lease must be registered in the Land Registry. In this arrangement, the leaseholder owns the building but not the land, and they are required to pay annual rent to the landowner.
In some regions, land lease contracts can be affordable and favorable to the leaseholder. However, in the Helsinki metropolitan area, land rents are often less appealing compared to owning the land outright
When the lease term for rental land expires, the landowner and the land leaseholder typically negotiate a new contract. This renegotiation can often result in substantial rent increases, especially if the value of the land has risen significantly during the lease period. In high-demand areas, such as the Helsinki metropolitan region, rising land prices can make these rent adjustments particularly steep.
On land lease transactions:
Sales contract doesn't have to be notarized, but the lease hold title must be registered.
The buyer can claim compensation for a hidden defect within five years of the purchase, but the claim must be made within a reasonable time after the defect is discovered.
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