BRF wins battle if land rent – gets right in the Supreme Court

The Supreme Court lowers the proposed increase in land rental for the housing association Smyrna in Stockholm, such as DN Previously reported.

The so -called debt rate, which determines how large the increase will be, is lowered from 3 to 1.75 percent. The association had requested that it should be 1 percent, given that the real interest rate has been negative for a long time.

The landowner The State Property Agency Wanted to raise the land rent from SEK 1.9 million a year to 5.5 million during the ten-year period 2021-2031. The association opposed this, and appealed.

– If we end up at the levels they propose, it is only a matter of time before the association goes over. If we raise the fees too much, those who live here cannot pay in the end, said Heresh Zaremand, treasurer and board member of Brf Smyrna when DN wrote about the dispute Spring 2023.

The Land and Environmental Court concluded that the increase would be 163 percent, or SEK 5 million per year. But the case then obtained a trial permit in HD, which now sets the sum to 2.9 million. This means a significant reduction compared to the original requirement.

The Supreme Court finds Also, that courts must make reasonable assessments when land rents are increased for residential buildings with land rights, which can be taken into account for the residents.

The judgment is of great importance for other similar cases where landowners appealed against rent increases.