Banks make an effort to solve ground rent problem

Efforts are being made to solve the problems facing people who want to sell housing built on other people’s land, the Dutch banking association said on Thursday.

Last month it emerged that banks have all but stopped giving mortgages to people who want to buy property situated on another private owner’s land and therefore have to pay ground rent (erfpacht).
This means thousands of homes have become impossible to sell.
Banks are now working with landowners to draw up standard ground rent contracts which should solve the problem, the NVB said.

Earlier stories

Minister ticks off banks over ground rent
Banks refuse to give mortgages for property on private land

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