What is a heritable building right in Switzerland?

A heritable building right (building leasehold) allows you to erect and use a building on someone else’s land. The leaseholder pays the landowner an annual ground rent, typically 2–5% of the land value.

How long does a building leasehold contract run for?

In Switzerland, building leasehold contracts are usually concluded for 30 to 100 years. When they expire, the building generally reverts to the landowner, although compensation can be agreed.

Is a building leasehold property cheaper?

Yes, because there is no need to buy the land, the purchase price is often 30–50% lower than with freehold ownership. In return, there is an ongoing ground rent, which increases the monthly costs.

Can I take out a mortgage on a building leasehold?

Yes, banks do finance building leasehold properties. However, the loan-to-value limit is often lower, and the remaining term of the building leasehold must clearly exceed the mortgage term.

Leasehold: Pros & Cons for Buyers