New form of leasehold for young farmers

Asr real estate has introduced a new form of ground lease: the 'Jonge Boeren Erfpacht'. With this contract form, young entrepreneurs need to be less financially strong at the start of their career as a farmer. The leasehold scheme also contains more customization with regard to the term.

Asr makes it possible for the young entrepreneur's agricultural business to take over the land for a maximum of 90% of the market value in free state. The young entrepreneur will then immediately be able to use the land again on the basis of a leasehold for a term of at least 30 and at most 40 years.

The term depends on the age of the entrepreneur, with the maximum age at the end of the contract being 70 years. At the end of the long lease, asr real estate decides whether the land can be bought free of charge at its market value or whether the land will be relisted under the then applicable conditions.

Annual amount
The ground rent for the Jonge Boeren Erfpacht is a percentage that varies from 2,2 to 2,6%. In this form of ground lease, the ground rent is based on the choices made regarding the amount of the purchase price and the term of the contract, which in turn depends on the age of the entrepreneur. The ground rent is indexed annually on the basis of the consumer price index of Statistics Netherlands.

Asr, the largest manager of agricultural land in the Netherlands, is introducing the scheme to create more investment space for the young entrepreneur. According to the company, the young entrepreneurs have more advantages, such as long-term reliability of use and low costs without interim repayment obligations.

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