Contract Contents
We encourage all leaseholders of plots in Pihl to read the lease contract carefully, as it is the leaseholder’s duty to familiarize themselves with its terms.
Leasehold is governed by the Ground Lease Act, and in principle gives the leaseholder the same rights as an owner. The exceptions are those specifically reserved in the lease contract. These include, among other things, prohibitions on fencing the plot, erecting gates, felling trees, excavation and grading on the plot, snow clearing of cottage roads, etc. Many of these matters are regulated by municipal provisions under the municipal master plan or the Planning and Building Act.
Transfer of Lease Contract
Transfer of property on a leasehold plot shall be approved by Pihl AS as lessor.
For transfer, we need the following:
– Original lease contract
– Deed for registration or copy of probate / will
– Name, address, email and phone number of new owner
An endorsement to the new leaseholder is added to the lease contract. The deed for registering the transfer includes a separate section for the landowner/lessor’s approval of the transfer, where a representative of Pihl AS must sign. The deed must be sent to us in original.
For Pihl AS and Ringsaker Commons, a transfer fee of NOK 3,000 is payable to the landowner.
For transfers where a real estate agent is not used, we recommend sending us a written inquiry to obtain leasehold information in advance: Send email.
Adjustment of Ground Rent
The ground rent is adjusted according to the lease contract, but in some cases the law overrides this and stipulates its own rules. Currently, the provisions can be summarized as follows:
- The adjustment interval during the lease period is described in the lease contract. Check your own lease contract to see what applies to your plot. Usually the interval is 1, 5, 10 or 20 years.
- In most cases, the contract stipulates adjustment in line with changes in the consumer price index.
- In cases where the lease contract stipulates adjustment based on land value, the leaseholder is specially protected by the Ground Lease Act. Such an adjustment could occur once after 2002; thereafter, adjustment shall be based on changes in the consumer price index.
- Upon expiry of a fixed-term contract, a special rule applies:
The ground rent may be adjusted to 2% of the land value, but in any case not more than NOK 15,580 per decare in 2025. Such adjustment may then occur every 30 years. This provision in the Ground Lease Act overrides provisions in individual contracts and is independent of the stipulated adjustment interval. - When a lease contract is transferred to a new owner, the ground rent may in many cases also be adjusted. This is done in accordance with the provisions of the individual contract.
When the Lease Contract Is Not Registered
A great many lease contracts are not registered, and there is generally no requirement for this. However, if the leaseholder wishes to use the property as security for obligations – for example, a loan from a credit institution, or upon redemption of the leasehold plot – the lease contract must be registered.
In such cases, Pihl AS as landowner must first obtain a “Registration letter for land property/leasehold land” from Ringsaker municipality. We will then assist further in the process to have the lease contract registered.
Do you have questions or would you like a copy of your lease contract?
