Tomträtt
Tomträtt is a perpetual right to use a fastighet (property unit) against an annual charge, the avgäld, without the user owning the land. The holder owns the building on the plot outright, and the right can be mortgaged and sold just like an ordinary property.
The right is governed by jordabalken chapter 13. Under section 2, a tomträtt can only be created in a property belonging to the state or a kommun (municipality), or exceptionally, with the government's consent, a foundation. In practice the arrangement is almost entirely municipal: the municipality holds the land and collects the avgäld, most often on residential plots in built-up areas where the municipality has never wanted to sell the land itself. Under section 6, the agreement cannot restrict the holder's right to transfer the tomträtt or to mortgage it, which makes a tomträtt as tradeable and mortgageable as an owned property, only without the land.
The avgäld runs in fixed avgäld periods, normally 10 years under chapter 13 section 10, unless a longer period has been agreed. This is where it really hurts: under section 11, either party may, in the penultimate year of the current period, demand that the avgäld be reassessed on the basis of the land value at the time of the review, not the value when the agreement was made. A sharp rise in market prices in a large city can therefore produce a sudden and large increase in the annual charge at the next change of period, without the holder having had any influence on the underlying land price.
If the property owner, that is the municipality, terminates the agreement, separate notice periods apply under section 14: normally 60 years for the first period and 40 years thereafter, or down to a minimum of 20 years if the plot is used for something other than residential development. The notice itself must be given at least two years, but not earlier than five years, before the end of the period (section 15), and the tomträtt holder can challenge the notice within three months if they consider that there are no grounds for it (section 16). Where notice is valid, the municipality is obliged under section 17 to buy out the building at full value, as if the tomträtt still continued unchanged with the same purpose and regulations, and any dispute over the buy-out sum goes to court within one year after the notice has been recorded in the registration part of the property register (section 18).
This is where the most important difference from Norwegian tomtefeste and festetomt lies: the Norwegian ground lessee has a statutory redemption right that lets the lessee demand to buy the plot from the landowner. The Swedish tomträtt holder has no such claim against the municipality, and can never terminate the agreement themselves (section 13), only transfer or mortgage it on. The redemption duty runs the other way: it is the municipality that must buy out the building if it terminates the agreement itself, not the holder who can demand to take over the land. Another difference is who owns the land in the first place: a Norwegian festetomt can sit on private land, whereas a Swedish tomträtt under chapter 13 section 2 almost always sits on municipal (or state) land.
From Placepoint's ordbok: Tomträtt
More information: Riksdagen: Jordabalk (1970:994), 13 kap., Lantmäteriet: Frågor om lagfart, tomträtt, inteckning, Boverket: Tomter, PBL kunskapsbanken
English: Site leasehold (Swedish-specific: a perpetual, mortgageable and tradeable right to use municipally owned land against an annual ground rent).
Frequently asked questions
What is a tomträtt?
A perpetual right to use a fastighet against an annual charge (the avgäld), without the user owning the land itself. The holder owns the building and can mortgage and sell the right freely.
Who can grant a tomträtt in Sweden?
Almost exclusively the state or a municipality. A foundation can do so only exceptionally, with the government's consent.
How often does the avgäld change?
Usually every 10 years, and in some cases every 20 years for non-residential purposes. The amount can be reassessed on the basis of the land value at the time of the review, not the value originally agreed, which can produce a sudden increase.
Can you mortgage or sell a tomträtt?
Yes. The right cannot be restricted in either transfer or mortgaging, and in practice works like an owned property for sale and borrowing, only without the land.
What is the difference between a tomträtt and Norwegian tomtefeste?
The Norwegian ground lessee has a statutory redemption right to demand purchase of the plot from the landowner. The Swedish tomträtt holder has no equivalent claim; instead it is the municipality that must buy out the building if it terminates the agreement itself.
What happens if the municipality terminates a tomträtt?
The municipality is obliged to buy out the building at full value, as if the tomträtt had continued unchanged. The notice periods are long, normally 60 years first and then 40 years, or down to 20 years for non-residential development.