Ground lease in Amsterdam: what it does to your home's value

In large parts of Amsterdam your home does not stand on freehold land, but on land you hold from the municipality under a ground lease (erfpacht). For a home's value and saleability that makes a material difference. Yet it is still often underestimated at purchase.

What a ground lease actually is

Under a ground lease you own the home, but not the land beneath it. For the use of that land you pay a fee, the canon. You can pay this periodically, or buy it off in one go for a longer period. The terms are set out in the ground-lease deed and largely determine what the home is worth.

Bought off, running canon or perpetual

• —Bought-off canon: nothing needs to be paid for the land for now, which is favourable for value and financing.
• —Running canon: you pay periodically, and on review that amount can rise sharply. Buyers factor that into their offer.
• —Perpetual ground lease: the terms are fixed for the long term, giving clarity about future charges.

Why it affects value

A future canon increase is a future cost, and buyers and lenders count on it. A home with a bought-off or favourably fixed ground lease generally sells more easily than a comparable home with an uncertain, running canon. Financing can differ too, because banks look closely at the ground-lease terms.

What to check as a buyer or seller

Always request the ground-lease deed and the current details: is the canon bought off and until when, what are the review dates, and are there special provisions. For sellers it pays to have this clear in advance, so buyers do not have to guess. Uncertainty always pushes the price down.

Unsure what the ground-lease situation means for your home? We're happy to look at it with you during a no-obligation introduction.