Posted on February 12, 2019
Leasehold is a complicated financial contract that most people don't want to think about for too long but that many Amsterdam residents do have to deal with. This year there is extra attention for switching to perpetual ground lease because for applications through December 31, 2019, the City of Amsterdam is giving an extra 10% discount (total 35%) to homeowners who switch. In addition, in 2019 only, the WOZ value from 2015 or 2016 (the lowest) will still be used and not, as from 2020, the WOZ value from the previous year.
The Makelaarsvereniging Amsterdam (MVA), to which 600 NVM brokers in the Amsterdam region belong, believes that leaseholders should be well informed about the various transfer options. The MVA does this out of social responsibility. Doing nothing in 2019 is not an option according to the MVA, which is why the Erfpacht Analyse has been developed.
Leasehold Analysis, what is it and what can you do with it
The Leasehold Analysis explores various future scenarios based on solid valuation methods and financial assumptions. It provides insight into which scenarios there are with regard to switching to a perpetual ground lease (e.g. canon payment, latch on or buy off).
Furthermore, it provides a clear analysis of the tax aspects, how to pay, when to pay, impact on disposable income, risks and the impact on home value both in the long and short term. The Erfpacht Analyse performs an independent check on the calculations of the municipality of Amsterdam.
For whom available
MVA affiliated brokers can have an Leasehold Analysis prepared for the consumer starting February 2019. Of course, this requires input from the consumer about the current situation (e.g., WOZ value, current canon, end of current term, etc.). The Leasehold Analysis then provides good insight into the possible cost developments within the various scenarios. The real estate agent can interpret the Erfpacht Analyse properly and look at it together with the consumer so that the most optimal choice can be made for the home based on the right insights. This is important for every Amsterdam resident who lives on leasehold land or is interested in buying a home.
The web page www.mva.nl/vind-een-professional lists all MVA brokers.