What does right-of-occupancy mean?
Right-of-occupancy is a form of living in which the tenant purchases the right to occupy the apartment and then pays a monthly residence charge. The right-of-occupancy payment amounts to 15% of the purchase price of the apartment.
The resident has lifelong tenancy but cannot purchase and become the owner of the right-of-occupancy apartment. If the tenant decides to give up the right of occupancy, they are refunded for the right-of-occupancy payment. The impact of the building cost index will be taken into account in the refund.
A home for you needs
More than 100 000 Finns have chosen a right-of-occupancy home. Asuntosäätiö offers homes in over 30 municipalities all around Finland. Your home can be in an apartment house, terraced house and semi-detached houses – what suits you and your family best. You can renovate your right-of-occupancy according to our alteration work instructions.
Predicatble housing costs
You only pay 15% of the acquisition value of the apartment and a monthly maintenance charge. There are no income limits, nor asset limits for people over 55. You do not lose the tax benefits granted to first-time homebuyers and you can insure the loan with the right-of-occupancy contract. You can also apply for housing allowance from Kela.
Should your life situation change, you can give up your home within three months. In this case, you will be refunded for the right-of-occupancy payment, adjusted by the building cost index. You can temporarily rent out your home, assign it to a family member or leave it as inheritance.
Who can obtain a right-of-occupancy home?
Anyone who has turned 18 can apply for a right-of-occupancy home. The applicant’s income does not affect the applicant’s chances of obtaining tenancy, but the applicant is not allowed to own an apartment of a similar size in the same area nor have the assets to purchase one. No asset limits apply to those over 55.
Housing expenses in right-of-occupancy homes
You pay a transfer price, which includes the original right-of-occupancy payment, adjusted by the building cost index, as well as the value of any alterations made by the previous residents for your right-of-occupancy home. If you acquire a home in a new building, you only pay the right-of-occupancy payment.
The right-of-occupancy payment amounts to 15% of the purchase price of the apartment. The amount depends on the size of the apartment and the price per square metre, similar to any other form of housing. You can apply for a bank loan to pay for the right-of-occupancy payment.
The resident pays a monthly residence charge, which covers the capital and maintenance costs of right-of-occupancy buildings. The residence charge is lower than the market-based rent for similar homes. In addition, a sum equivalent to two months’ residence charge is usually collected as security for the right-of-occupancy home.