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Long-term lease in Lüneburg: Agreement with citizens' initiative should bring relief!
The SPD and the Greens in Lüneburg are calling for a reduction in ground rent. Citizens' initiative is involved in negotiations to relieve pressure on housing.
Long-term lease in Lüneburg: Agreement with citizens' initiative should bring relief!
In Lüneburg, an exciting turnaround is emerging in the discussions about leasehold building law. As the State newspaper reported, the SPD and the Greens in the state parliament have called for the ground rent to be reduced to 1.25 percent. At the same time, the monastery chamber plans to link the ground rent to the development of federal bonds in the future and to offer discounts in tight housing markets.
A new attempt to provide relief in the area of long-term leases will be started in Lüneburg on January 26th. An interfactional working group of the Council has decided to resume deliberations and to actively include the voices of the citizens' initiative. The SPD parliamentary group leader Thomas Dißelmeyer recently confirmed that the SPD has moved away from previous positions and is seeking dialogue with the citizens' initiative.
Involvement of the citizens' initiative
The city treasurer formulates the goal of the working group as a legally compliant solution that takes into account both public and particular interests. Loud Monastery chamber Leasehold contracts are usually designed for 80 years, whereby customers pay a ground rent and can build on these properties without buying them. This provides financial flexibility, which is valued in many cases.
The discussion about the citizens' initiative's right to vote during the working group meetings plays an important role. The concern is supported by Andreas Kellner, a representative of the citizens' initiative, who criticizes the monastery chamber's calculation model. This is at the expense of those with leasehold rights, warned Kellner: “The reduction in ground rent in high-price areas is limited to twenty years and is no longer applicable when ownership changes, which can become a financial burden for many.”
Adjustments to the ground rent
In general, leaseholds are becoming increasingly popular, especially in areas where land prices are rising sharply. Loud VR Leasehold holders have an additional right to renew their contracts when they end. In many regions of Lower Saxony, including Lüneburg, this long-term advantage is often an argument for choosing a leasehold instead of a direct purchase of land.
A simple example should illustrate the difference: Purchasing a 500 square meter property could cost around 200,000 euros, while when using the leasehold the annual lease rent is around 8,000 euros. Over 20 years this adds up to 160,000 euros, which, combined with construction costs of around 350,000 euros, is certainly a good option compared to a direct transfer of land, which requires higher initial investments.
The upcoming consultations and the involvement of the citizens' initiative are a step in the right direction to bring new life to the leasehold area of Lüneburg and to find fair solutions that meet the needs of everyone involved.