Security of tenure for leaseholds – agriculture, residential, and facility
Security of tenure means different things depending on the form of lease. It is therefore misleading to say that "tenants have security of tenure" without first determining what type of lease it is.
| Lease type | Typical protection |
|---|---|
| Agricultural lease | Direct security of tenure in many cases – right to a lease extension review. |
| Residential lease | Direct security of tenure when the legal conditions are met. |
| Commercial lease | Indirect security of tenure – the agreement may terminate, but compensation may be applicable. |
| Miscellaneous lease (lägenhetsarrende) | No statutory security of tenure corresponding to the other forms. |
Does an agricultural, residential, building or general land lease give security of tenure?
Agricultural leases generally have direct protection, except for example side leases of one year or less. Residential leases can give direct protection if the statutory requirements are met. Building leases (anläggningsarrende) have indirect protection through possible compensation. General land leases (lägenhetsarrende) have no equivalent statutory security of tenure.
For an agricultural lease lasting at least one year, notice is normally required eight months before expiry when shorter than five years, otherwise one year. In a protected lease the landowner may also have to refer a renewal dispute to the Rent and Tenancies Tribunal in time.
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Agricultural lease
As a rule, the tenant has the right to have the issue of extension reviewed. Exceptions exist for, among other things, certain short-term secondary leases and in cases of forfeiture or serious mismanagement.
Residential lease
The protection normally means that the tenant does not have to leave the leased property without a legal basis for refusing an extension. The protection assumes, among other things, that there is a relevant residential building and can be affected by exemptions or forfeiture.
Commercial lease
For a commercial land lease that permits a business to retain or erect a building of more than minor significance, compare our commercial land lease (anläggningsarrende) agreement with site and building schedules. This form may carry indirect security of tenure: compensation can be available in certain circumstances, but an extension of the lease is not guaranteed. Verify the conditions in Chapter 11 of the Swedish Land Code.
Here, the protection is indirect. The tenant may have to move when the agreement expires but may in certain cases be entitled to compensation. The parties can agree to waive the security of tenure without the approval of the regional rent and lease tribunal (arrendenämnden).
Miscellaneous lease (lägenhetsarrende)
Miscellaneous leases lack equivalent statutory security of tenure. The wording of the agreement regarding time, termination, and extension is therefore particularly important.
Also read The Swedish Land Code's rules on leases and the main guide.
Need a template for a miscellaneous land lease?
A miscellaneous land lease (lägenhetsarrende) does not have the same statutory protection as agricultural or residential land leases. Define the site boundaries, purpose, rent, duration and termination clearly. See our miscellaneous land lease agreement template in Word and PDF. Determine the correct type of lease before signing.
Sources
- The Swedish Courts – agricultural lease
- The Swedish Courts – residential lease
- The Swedish Courts – commercial lease
For arable land leased for cultivation, see the arable land lease template. Assess the term and whether housing is included before deciding security of tenure and notice periods.
Templates in this article
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