Residential Lease – Agreements, Termination and Security of Tenure 2026/2027
Leasehold of an apartment is a lease of land for compensation that is neither agricultural leasehold, residential leasehold nor leasehold for facilities. This may, for example, involve a storage area, a detached parking area or other land use that meets the criteria of the law. It is the use and the actual content of the contractual relationship – not the title of the document – that determines which form of leasehold applies.
1. What is leasehold of an apartment?
According to Chapter 8, Section 1 of the Land Code (1970:994), leasehold of an apartment is a leasehold of land for purposes other than agriculture, when the leasehold does not constitute residential leasehold or leasehold for facilities. A leasehold presupposes that land is leased for use in exchange for compensation. A leasehold that does not meet the requirements must be assessed according to other applicable rules.
Examples may include a demarcated storage area or land area for other use. However, an area that is practically used to construct or maintain a business building may be covered by the rules on leasehold for facilities. Investigate the purpose before the agreement is titled.
2. Leasehold of an apartment or another form of leasehold?
| Form of leasehold | Typical purpose | What should be checked? |
|---|---|---|
| Leasehold of an apartment | Land for purposes other than the three special forms of leasehold | Purpose, land area, compensation and whether special rules take precedence |
| Agricultural leasehold | Land leased for agriculture | The rules in Chapter 9 of the Land Code |
| Residential leasehold | Land with the right to have residential buildings according to Chapter 10 | The purpose of the building and the leasehold |
| Leasehold for facilities | Land with the right to have buildings of a certain significance for acquisition activities | The requirements in Chapter 11, Section 1 of the Land Code |
A allotment or parking lot is not automatically leasehold of an apartment in every situation. The actual conditions of the leasehold, buildings and any special rules need to be examined.
3. What should a leasehold agreement for an apartment contain?
According to Chapter 8, Section 3 of the Land Code, a leasehold agreement for an apartment shall be drawn up in writing, unless the parties agree otherwise. A written agreement is normally safest even when an oral agreement is possible.
- Parties and property: names, contact details, property designation and authorized lessor.
- Land area: clear site plan or area appendix with boundaries, access and any common areas.
- Purpose: exact permitted use, for example storage, storage area or parking, as well as limitations.
- Term of the agreement: fixed term or indefinite; state commencement and conditions for termination.
- Fee: amount, payment interval, possible index adjustment and handling of VAT after separate tax assessment.
- Responsibility: maintenance, fencing, waste, damages, insurance, permits and any installations.
- Conclusion: surrender, inspection, property left behind and restoration with regard to applicable rules.
Appendices with photos, commencement protocol and land map reduce the risk of dispute over what is actually leased. Check planning and environmental regulations as well as any official permits for the planned use.
4. How does termination of leasehold of an apartment work?
For leasehold of an apartment without a fixed leasehold term, Chapter 8, Section 5 of the Land Code states that the agreement shall as a general rule terminate on the fixed date that falls nearest to six months after the termination. The fixed date is March 14 according to Chapter 8, Section 4. The parties may agree on another notice period. Termination before commencement has a special rule in Chapter 8, Section 5.
According to Chapter 8, Section 8, special form and service rules apply for termination. The starting point is written termination unless a written acknowledgment is provided. A written termination should normally be served in the prescribed manner. A regular email without guaranteed receipt should therefore not be assumed to be sufficient without further consideration.
For an in-depth assessment of the form of termination, see also the Supreme Court's ruling NJA 2015 p. 186, which applies to the written requirement for termination of leasehold of an apartment.
5. Does the leaseholder of an apartment have security of tenure?
Leasehold of an apartment does not have the statutory extension protection that applies to agricultural and residential leasehold in certain situations. Agreed conditions, other legal rules and the circumstances of the individual case can still affect when and how the leasehold terminates. Therefore, avoid the wording that the landowner can always terminate the agreement at any time.
If the leasehold is in fact residential leasehold or leasehold for facilities, other protection rules may apply. See the guide on security of tenure in leasehold and the overview of forms of leasehold.
6. Example: leasehold of a gravel area
A property owner leases an enclosed gravel area for an annual fee for storage of materials. The parties draw the area on a map, describe what items may be stored and state who is responsible for access, waste and restoration. If the leaseholder later wants to construct a building for the business, the form of leasehold and the agreement need to be reviewed; the change of purpose may affect the legal classification.
At commencement, existing damages and installations are documented. At surrender, the condition of the site is compared with the protocol. Questions about property that the leaseholder has added to the land must also be assessed against, among other things, Chapter 8, Sections 21–22 of the Land Code and any contractual terms.
7. Checklist and common mistakes
- Do not rely solely on the title "leasehold of an apartment" – check the actual use.
- Describe boundaries and access with an appendix; do not use only approximate area.
- Distinguish between fixed-term agreement and indefinite agreement before termination is calculated.
- Check form requirements and service before termination is sent.
- Clearly regulate fee, permits, maintenance, insurance and restoration.
- Check whether buildings or agricultural use entail another form of leasehold.
- Keep signed agreement, area map, protocol and communication.
8. Document template and complementary guides
To structure a leasehold, you can use Leasehold agreement for an apartment – Word/PDF with area appendices. The document is a working basis and does not replace the assessment of the form of leasehold, conditions and any permits.
Also read the guide on the Land Code's leasehold rules and the comprehensive leasehold guide.
Document the land leasehold clearly
State use, boundaries, compensation, responsibility and termination conditions in a coherent agreement.
9. Frequently asked questions
Is leasehold of an apartment a rental agreement for an apartment?
No. The name refers to a special form of leasehold of land and should not be confused with rental of housing according to Chapter 12 of the Land Code.
Must the agreement be in writing?
The general rule in Chapter 8, Section 3 is written form, unless otherwise agreed. A written agreement is practically recommended.
Is the notice period always six months?
No. The six-month rule in Chapter 8, Section 5 applies to indefinite leaseholds according to the provisions' requirements and can be affected by the agreed notice period.
Do I have an automatic right to extension?
Not the same statutory extension protection as in some other forms of leasehold. Check the content of the agreement and that the leasehold is indeed leasehold of an apartment.
Can a parking area be leasehold of an apartment?
It can be, but the concrete leasehold and any special rules must be assessed.
Sources and delimitation
Templates in this article
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