A leasehold is a plot of land which is rented from a landowner in a ground lease. Generally, the lessor allows the lessee to us the land in exchange for ground rent. In most cases, the lease grants the lessee multiple rights over the land for the duration of the lease, including the right to build on or under the plot, and to transfer their leasehold to another entity through a sale or inheritance. In Switzerland, ground leases can be arranged for a minimum of 30 years and a maximum of 100 years.

Some municipalities place higher minimums or allow guaranteed extensions of leases for a fixed amount of additional terms. At the end of a lease term, the lease may either be renegotiated or the land may be reclaimed by the landowner in exchange for compensation towards the cost of immovable property owned by the lessee.

More on this topic:
What is a freehold?
Housing in Switzerland: Rent or buy?
Rent or buy calculator
Buying investment property in Switzerland
Leasehold agreements explained

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