Part-ownership housing

Part-ownership housing is a form of housing where the tenant first buys part of the apartment by paying an agreed percentage, usually 10-15%, of the total price of the apartment. Initially, the tenant pays rent for the apartment. After a specified time period, the tenant has the right to buy the apartment outright. Part-ownership may be used as security for a mortgage if necessary.

Part-ownership apartments may be either market-financed or subject to state interest subsidies. Tenants for state-subsidised part-ownership apartments are selected on the basis of their income and assets. In market-financed part-ownership apartments income and assets are not taken into consideration.

The tenant’s rights and obligations concerning the housing arrangement vary according to the contractual relationship they are in, as their status changes with time. When the tenant is paying rent, his obligations are assessed on the basis of the legal provisions on residential leases.
When the tenant buys the apartment outright, his status and the responsibility for maintenance is determined by the Housing Companies Act.

Read more about renting an apartment

Buying the apartment outright

When the apartment is bought outright, the initial investment and any further investments made by the tenant to acquire a larger proportion of the apartment are deducted from the purchase price.

Once the tenant has bought the apartment outright, it is treated as a traditional apartment in a housing company.