Valby’s condominium association had since 1953 paid an annual ground rent to the municipality of just under SEK 8,000. When the agreement expired, it was changed according to the market value of the plot and the fee landed at over one million kroner.
Similar increases have affected many of Malmö’s condominium associations in recent years.
– We need a dialogue with the city of Malmö and help from HSB to find a good solution on how to do it, says Ann Nolin, who was chairman of Brf Valby when the old agreement expired.
Wanted to buy the land
To avoid paying the increased fees, they wanted to buy the land, but due to renovations, could not afford the market price of SEK 59 million. Ann Nolin does not know if they will be able to afford to buy the plot free before the new agreement expires in ten years.
– We don’t know what it will cost until we sign a new agreement. I don’t think it will get any cheaper.
HSB wants a discount
Valby is an HSB association, and HSB Malmö’s CEO Michael Carlsson wants the municipality to let condominium associations buy the land free of charge at a discount. Villa owners are allowed to buy for almost half the market value.
– If you were to go in with a discount so that house owners and condominium associations get the same conditions, then many more people would be able to buy out.
The municipality objects
The city of Malmö is not interested in such a solution. Andreas Schönström (S), chairman of Malmö city’s technical committee, believes that it is the residents of Malmö who benefit from the high fees.
– If we don’t collect this 169 million in land tax, we have to take it out in tax funds. And what do we say to the neighbors who have already paid 100 percent of the land’s value? What is the justice in that?
In addition, he believes that in practice it is not more expensive for condominium associations than for villa owners.
– There are many more people in an apartment building who have to share the cost, so per individual, it is usually cheaper than for single-family house owners, he says.
