Leaseholder
A leaseholder (fester) is the party who leases a leasehold plot from a landowner (the ground lessor) in order to use the plot over a long period, typically to erect or own a building on it. The leaseholder owns the buildings, while the ground lessor keeps the title to the land itself. The leasehold relationship is governed by a ground lease agreement and is based on the Ground Lease Act of 1996.
The leasehold relationship can cover housing (a leasehold plot for a detached house or a holiday home) or business use. For residential and holiday leaseholds, the Ground Lease Act gives the leaseholder extensive protection: a right to extension, a regulated mechanism for adjusting the ground rent upwards, and a statutory right of redemption after a certain number of years. For business leaseholds, the parties are freer to agree terms, and the statutory protection is weaker. The leaseholder pays an annual ground rent that under the act can be adjusted by the consumer price index or according to the terms of the agreement. On extension, the ground lessor can under section 15 of the Ground Lease Act demand an upward adjustment linked to the plot value, but with significant caps set in law and case law.
A leasehold plot can be registered as a separate matrikkelenhet with its own bruksnummer (festenummer). The lease contract is recorded in Grunnboken as an encumbrance on the ground lessor's property. The leaseholder therefore holds title to the leasehold right itself, while the landowner keeps title to the land. The building erected on the leasehold plot is recorded in the matrikkel under the leasehold plot's cadastral number and is owned by the leaseholder. The leaseholder can mortgage the leasehold right and the building together. The charge is registered on the leasehold plot's register page and ranks by time of registration.
Redemption is the leaseholder's right to demand to take over the plot as property against a statutory consideration. For residential leaseholds, the leaseholder can demand redemption once the ground lease agreement has lasted 30 years, or when the agreement has expired, see section 32 of the Ground Lease Act. On redemption, the consideration is as a general rule calculated as 25 times the adjusted annual ground rent under section 37 of the Ground Lease Act, but the ground lessor can demand that the consideration be set at 40% of the plot value at the time of redemption if that is higher. This has been the subject of extensive case law (the Lindheim case and the legislative changes in 2015). Similar rules apply to holiday leaseholds, with certain differences. Business leaseholds have no statutory right of redemption, so the agreement governs.
Extension is an alternative to redemption. Under section 33 of the Ground Lease Act, the leaseholder can on expiry demand an extension on the same terms as before, but the ground lessor can demand an upward adjustment of the ground rent based on the plot value. The extension runs indefinitely until the leaseholder chooses to redeem or terminate. Where the lease contract is registered, the leasehold right is inherited in the ordinary way. The leasehold relationship is sold, bought and mortgaged like any other right in real property. Default on the ground rent can, under the agreement and the act, give the ground lessor the right to terminate the lease, but practice requires material default and normally court proceedings.
In Placepoint, leasehold relationships are shown in the property panel as a separate matrikkelenhet with a festenummer, where the leaseholder is listed as the title holder of the leasehold right and the building, and the ground lessor is listed as the title holder of the land.
How the dataset appears on the map
The dataset is part of the map layer Property as Lessees:
From Placepoint's dictionary: Leaseholder
More information: Lovdata: the Ground Lease Act, Kartverket: Eiendom, Store norske leksikon: tomtefeste
English: Ground lessee (holder of a festeavtale, Norwegian-specific).
Filtering
The filter lets you narrow down by Matrikkeltype.
Shown here with Leasehold land selected under Plot type.
Frequently asked questions
What is a leaseholder?
A leaseholder is the party who leases a leasehold plot from a landowner (the ground lessor) in order to use the plot over a long period, typically to erect or own a building on it. The leasehold relationship is governed by the Ground Lease Act of 1996.
Who owns the building on a leasehold plot?
The leaseholder owns the building and the leasehold right. The ground lessor owns the land itself. The building and the leasehold right can be sold and mortgaged together, and the leasehold plot is recorded as a separate matrikkelenhet with a festenummer.
Can the leaseholder demand to buy the plot?
Yes. For residential leaseholds, the leaseholder can under section 32 of the Ground Lease Act demand redemption once the ground lease agreement has lasted 30 years, or on expiry. The consideration is calculated as 25 times the adjusted ground rent or 40% of the plot value.
How is the ground rent adjusted?
The ground rent is adjusted according to the agreement, normally by the consumer price index. On extension, the ground lessor can demand an upward adjustment linked to the plot value under section 15 of the Ground Lease Act, but subject to statutory caps.
Are the rules the same for residential and business leaseholds?
No. The Ground Lease Act gives strong protection for residential and holiday leaseholds, including the right of redemption and extension. For business leaseholds, the parties are much freer, the statutory protection is weaker and the agreement governs.