What is Ground Lease?

A long-term lease of land from an owner who retains ultimate title.

Key Facts — Ground Lease

Erfpacht is common in Netherlands, particularly in Amsterdam and major cities.

Lease periods typically range from 50 to 99 years.

Tenant pays annual canon (ground rent) to the landowner.

Property can be sold with the remaining lease period.

When lease expires, buildings revert to landowner.

Common Mistake: Many believe erfpacht means you own the property; it actually means you lease the ground.
Expert Tip: When buying Dutch erfpacht property, factor in canon costs and lease expiration date in your valuation.

Frequently Asked Questions

How much is the annual canon?

Canon rates vary by municipality and location; research local rates carefully.

What happens when the lease ends?

The building typically reverts to the land owner unless renegotiated.

Can I extend the lease?

Usually, but extension negotiations happen with the ground owner.

→ Read our full guide: Guide To Lawyers In Netherlands

AK
AvökatFinder Editorial Team Legal glossary editors — expat legal terms across 41 European countries

This glossary entry is produced by the AvökatFinder editorial team and reviewed for accuracy. It is for informational purposes only and does not constitute legal advice. Always consult a qualified lawyer in Netherlands for advice specific to your situation.

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