An overview of leasing and purchasing options
Clear leasing and purchasing conditions are important for the optimal use of building land in projects, promotional campaigns and investment projects of institutional and small investors. Below you will find an overview of the basic modalities and sample calculations relating to the leasehold and sales agreement models. We will negotiate the specific purchasing conditions for your property with you on an individual basis.
Leaseholds
As part of our growth and development strategy, we offer landowners the following negotiable conditions for leaseholds on residential and/or commercial building land:
General conditions for leasehold agreements
Type of contract: | leasehold agreement, notarially certified, entered into the local land register |
Security: | land charge; 3 years’ ground rent |
Land market value: | joint determination |
Interest rate: | subject to negotiation |
Contract duration: | at least 90 years, renewal options |
Commencement of leasehold payments: | immediately upon notarisation, quarterly |
Property reversion compensation: | 70-90% |
Ground rent adjustment: | combination of consumer index and land market value trends |
Zones: | residential zone1, commercial zone, residential-commercial zone, retail zone |
Size: | at least 500 m² |
Sample calculation for a leasehold
- You offer us a 2,000 m² development site at a good location in a residential zone.
- We determine the land market value based on local conditions (macro and micro location features) and developing possibilities at a rate of CHF/EUR 2,000 per m².
- The land market value thus works out to CHF/EUR 4 million.
- A ground rental rate of 2.7% is agreed.
- The annual rent thus amounts to CHF/EUR 108,000 (CHF/EUR 27,000 per quarter or CHF/EUR 9,000 per month).
- You will receive the first payment for the current quarter already upon notarisation.
- All additional payments are to be made to you at the beginning of each quarter.
- The land remains in your ownership and generates immediate income with no need to deal with issues such as property capital gains taxes, negative interest rates on the purchase price or the many risks and costs associated with reinvestment.
1 Including core zones
Sales agreements
As part of our growth and development strategy, we offer sales agreements for residential and/or commercial building land under the following negotiable conditions with the aim of achieving a speedy sale and a top market price for your property.
General conditions for sales agreements
Type of contract: | sales agreement, notarially certified, entered into the local land register |
Contract duration: | at least 12 months, depending on the size and location |
Extension: | up to 36 months, depending on the size and location |
Advance payment: | depending on the negotiations and the project |
Penalty for a non-sale: | depending on the negotiations and the project |
Transferability: | Yes |
Want to find out more about this topic?
Take this opportunity to arrange an individual consulting session with us.
Our real estate, legal and tax specialists will review your property’s potential and make a recommendation that is tailored to your situation.