Amsterdam residents would be wise to take action in good time, as it is expected that leasehold buy-out sums in Amsterdam will be considerably higher in 2026 than they are now. Municipal experts, financial advisers and interest groups are therefore urging homeowners to contact the municipality before the 2026 deadline. Those who do so in time can benefit from the current, relatively favourable calculation method and run less risk of incurring substantial additional costs in the future.
What exactly is going on?Amsterdam has had a leasehold system for decades, whereby the land under homes remains in the hands of the municipality. Homeowners pay an annual ground rent or choose to buy off this rent in one go. Since the introduction of the so-called perpetual leasehold system in 2017, leaseholders have been given the opportunity to switch to favourable terms, provided they do so within the specified period. That period expires in 2026. After that date, the buy-out will be calculated on the basis of current land values and interest rates, which are expected to be significantly higher than the current assumptions.
Why are the surrender values increasing?
The main reason for the expected increase is the continuing high value of land in Amsterdam. House prices have risen sharply in recent years, and although the market is showing some signs of cooling, land prices remain at historically high levels. Interest rates and adjusted calculation models also play a role in future calculations. According to experts, the difference between a buy-out before and after 2026 could amount to tens of thousands of pounds, depending on the location, size of the property and neighbourhood. The impact could be particularly significant in popular districts such as Amsterdam-Zuid, -Oost and -Noord.
We advise homeowners not to wait until the last minute. Applying for a transfer or surrender takes time and often requires advice, for example on financing or tax consequences. It can also become busy at the local council as the deadline approaches, which can lead to delays.
Waiting could mean that you will be stuck with a much higher buy-out sum or annual costs that will put more pressure on your housing budget.
Consequences for the housing market
The leasehold issue also affects the Amsterdam housing market. Properties with redeemed leaseholds or favourable terms are more attractive to buyers and generally fetch a higher selling price. Conversely, uncertainty about future leasehold costs can cause potential buyers to be cautious.
Example
For an apartment in Amsterdam with a WOZ value of €500,000, buying out the ground rent before 2026 could cost around €25,000. If you wait until after 2026, the same redemption amount could rise to around £40,000 due to less favourable calculation conditions. That means a difference of around £15,000. In addition, if you postpone, you will pay an annual ground rent, which may increase further in the future. An early switch therefore offers lower costs, more certainty and a more attractive property for sale.
It is strongly recommended to take action in good time. Those who register before the deadline can save thousands of pounds and avoid long-term financial uncertainty.
