Leasehold (right of emphyteusis).

A right of emphyteusis gives the emphytee the right to use another person's immovable property (such as a plot of land or a building) for a certain period and under certain conditions. The right of emphyteusis must be recorded by the notary in an appropriate deed, which must be registered in the registers of the Land Registry. The emphyteusis deed usually also states the fee that the emphytee must pay to the emphyteusee (also known as ‘bare owner’). That fee is called canon. Depending on what has been agreed with the owner, this canon must be paid periodically, or it can be bought off for a longer period or even forever.

Leasehold right: complications in renewal or extension

The right of leasehold can be established for a certain limited period of time, for example 25, 50 or 75 years. The ground lease deed may specify whether renewal is possible. If this is not the case, if the parties still wish to continue the ground lease relationship, it may be that dissolution of the ground lease right and its re-establishment will then be necessary. This may affect the rights third parties have over the leasehold right, such as mortgagees and garnishers. It may also be the case that the leasehold right is divided into apartment rights. Even then, care must be taken when extending or renewing the ground lease right.

Leasehold instrument of (semi-)government

The reasons why long leases are chosen can be diverse. For example, it is an instrument for transferring ownership of houses relatively cheaply (this happened after World War II, but also more recently under the Koopgarant scheme), but also to retain a certain influence on the use of the real estate issued in leasehold. The leaseholder (often a government agency such as a municipality), through the obligations in the ground lease deed, can influence how the property is used. Ground lease is used not only in the Netherlands, but also in the former Netherlands Antilles. Click here to read more about leasehold on Curacao. 

Leaseholder not owner, but can sell right

The leaseholder never becomes the owner of the property and is and remains only a user. However, the right of leasehold can be sold and transferred (unless the deed provides otherwise). It can also be encumbered with a right of mortgage.

Lawyer specializing in ground lease

For advice on leasehold rights, Lexys' leasehold lawyer can be of service to you. They have extensive experience in advising on ground lease issues. For example about extending or renewing ground lease rights, but also in disputes about ground lease rights. Visit contact at for more information.