Smart financing with leasehold
At The Vold, you purchase your home on municipal leasehold issued by the City of Amsterdam. This means you own the property, while the municipality retains ownership of the land. In return, you pay an annual ground lease fee. Owning the land beneath your home is often considered a major advantage. However, in today's housing market—with higher mortgage interest rates and updated lending regulations—that assumption no longer always holds true. Leasehold is common practice in Amsterdam, including at The Vold, and can actually provide several important financial benefits.
Why leashold can work in your favour
Lower mortgage, lower monthly costs
Because you don't finance the land itself, the required mortgage is lower. The annual ground lease fee is currently 2.39%, while mortgage interest rates for the same amount are considerably higher. This can result in lower monthly housing costs.
Tax benefits
Like mortgage interest, the annual ground lease fee is tax-deductible under the applicable Dutch tax rules, which may provide a direct financial advantage.
Greater borrowing capacity
The relatively low annual leasehold payment has a favourable effect on mortgage affordability calculations. As a result, you may be able to borrow more, giving you greater purchasing power.
Attractive now and in the future
The combination of a lower financing requirement and greater borrowing capacity makes homes at The Vold appealing to a broad range of buyers. That's not only beneficial when purchasing your home, but can also be an advantage when selling it in the future.
Discover what this means for you
Would you like to learn more about buying a leasehold home at The Vold? Our mortgage partner NEXTHome specialises in financing newly built homes and can explain exactly how leasehold may affect your financial situation.
During a free, no-obligation consultation, you'll gain insight into your financing options, the benefits of a project mortgage, and the impact of leasehold on your monthly costs and borrowing capacity.