DN previously reported on the dispute between Brf Liljeholmsberget and the city of Stockholm over the calculation of the ground rent, the so-called basic fee. According to the city’s model, the rent would have been increased as early as 2022 and would have been gradually increased to a 161 percent increase compared to previous agreements, but the association appealed the decision to the Regional and Environmental Court.
However, the court followed the city’s line and decided in spring 2023 that the rent would be increased from about SEK 1.6 million to SEK 4.3 million starting this year.
“In the long term, this is devastating for our economy,” said Erik Fahlén, chairman of the homeowners association, after the decision.
Brf Liljeholmsberget has decided to do this appealed the decision again, but the proceedings were put on hold pending another high-profile regional court ruling, in which Brf Smyrna ultimately won against Statens Fastighetsverk in the Supreme Court. The association hoped that the decision could also point the way in their case, but this was not the case.
The Regional and Environmental Court has now decided not to grant the association permission to appeal, meaning that the decision of a lower court remains in place. Brf Liljeholmsberget will not attempt to contact HD.
– We analyzed the situation together with our representatives and came to the conclusion that the legal process is closed for us. “We hope that our politicians will make smarter decisions when it comes to land rights in the future,” says Erik Fahlén.
The fact that the court reasoned differently in the Brf Liljeholmsberget case than in the Brf Smyrna case is because the city of Stockholm has a more generous property rights model than that used by Statens Fastighetsverk.
Despite this consideration Erik Fahlén said that the situation was unsustainable in the long term and that the property rights model needed to be fundamentally reformed. The ground rent will now be the club’s largest operating cost factor, and it is unclear how much it can increase in the future.
“We cannot plan for a longer term than the city of Stockholm indicates in its tables, and it is significantly shorter than what we are supposed to plan for as smart property owners,” he says.
In the short term, however, the association has planned for the current increase.
– But we will experience a significant increase in costs, which in my opinion can be equated to an increase in taxes for our members, says Erik Fahlén.
DN is looking for a Manager at the City of Stockholm.
Facts.Land correctly
● Land rights legislation was added at the beginning of the 20th century. The aim was to stimulate housing construction at a time of great housing shortage.
● Instead of buying land, anyone who wanted to build could use municipal or state land for an annual fee called the land fee (ground rent).
● The ground rent is set based on an interest rate on the property value, which is determined in crowns/square meter of gross area. The ground rent is therefore determined as follows: land value x interest rate = annual fee.
● As a rule, the rent changes every ten to twenty years, starting from the initial allocation of the property.
Facts.The ground rent for the Liljeholmsberget homeowners’ association
The City of Stockholm’s repayment periods for apartment buildings are usually ten years. A new ground rent is then set that reflects the value of the property.
For Brf Liljeholmsberget the rent developed as follows:
1992: 1 million SEK/year
2002: 1 million SEK/year
2012: 1.2 million SEK/year
2014: 1.6 million SEK/year
2022: SEK 2.6 million/year
2026: SEK 4.3 million/year
(The new ground rent in the contract will be gradually increased in the years 2022-2026)
Read more:
The community wants to increase the association’s ground rent by 132 percent: “extreme concern”
HD lowers the ground rent for BRF in Stockholm
