Leasehold right: what is the house worth – and what is the land worth? – explained

With a leasehold right (Erbbaurecht), the building and the land belong to different owners: the leaseholder may own a building on someone else’s land and usually pays ground rent for this (§§ 1, 9 ErbbauRG). In about four minutes, this video explains what determines the value of the leasehold right and the leasehold land.

What you will learn in the video

• Basics: transferable and inheritable right, limited in time, usually in return for ground rent; on expiry, compensation for the building as a rule, unless the contract provides otherwise (§ 27 ErbbauRG).
• Value drivers: ground rent compared with the market level, remaining term, compensation, market adjustment via factors (§ 22 ImmoWertV).
• Worked example: unencumbered land value 600,000 €; leasehold land with 6,000 € ground rent and 50 years remaining term approx. 291,000 € (simplified, without a building value share on expiry).
• Leasehold right: notional full ownership less land value plus the present value of an interest advantage, adjusted to the market (§§ 49, 50 ImmoWertV).
• In practice: check the remaining term, ground rent and value protection clause; a short remaining term makes financing more difficult.

Legal basis and sources (as of 9 October 2026)

• § 1 ErbbauRG – statutory content
• § 9 ErbbauRG – ground rent
• § 27 ErbbauRG – compensation on expiry
• §§ 48–52 ImmoWertV – leasehold right and leasehold land
• § 22 ImmoWertV – leasehold right and leasehold land factors

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not legal or tax advice and does not replace an appraisal of your property. Examples are simplified.