What is the advantage of an indefinite lease for me as a tenant?
The advantage is that you enjoy the security of being able to remain in the apartment for as long as you wish. Your lease does not expire, so it does not need to be renewed every third year.
Are there any disadvantages for me as a tenant?
No, there are no downsides. Regular lock-in periods and termination terms apply with an indefinite lease, just as they do with a fixed-term lease.
Does an indefinite lease mean that my tenancy can be more easily terminated before three years have passed?
No, the only difference is that an indefinite lease does not need to be renewed after three years.
Does an indefinite lease mean that it cannot be terminated by me as a tenant?
No, you have exactly the same rights as with a fixed-term lease. “Indefinite” means that no termination date has been agreed upon for the tenancy. The termination terms are the same with both types of leaseholds. Termination of the tenancy is determined by the applicable terms and not by an expiry date.
Does “indefinite” mean that the lease cannot be terminated by the landlord?
No, the termination terms are the same with an indefinite lease as with a fixed-term lease. Just as with fixed-term leases, the landlord can terminate an indefinite lease in the event where the tenant breaches the terms and conditions of the lease.
Do the new lease contracts have a bearing on the rent level?
For the first three years of the lease, there is no difference in rent level between the two types of leases. With an indefinite lease, the landlord can, after three years, regulate the rent in accordance with average rates, as opposed to a fixed-term lease where a new lease is entered into on market terms. Average rent levels are normally below market level rent – see explanation below.
What is “Average rent”?
“Average rent” is a kind of average for similar leaseholds, which are leased on similar contract terms within the same geographical area. It is not the same as market level rent, which is determined by market terms. Average rent is based on an already established rent level and is normally below market rent.
How is the rent level determined?
When a lease is signed, the rent will be based on market level rates. This applies to both types of leaseholds. With an indefinite lease, the landlord may adjust the rent in accordance with applicable average rent levels every three years. See explanation of average rent above.
If the termination terms are the same for the two types of leaseholds, what exactly is the difference between the current lease and an indefinite lease?
There are two important differences: a) That the lease does not have a termination date – it does not expire. b) The landlord cannot adjust the rent according to market level rates.
What happens if renovations are planned in the building I am living in?
The same termination terms apply to an indefinite and a fixed-term lease. The landlord can terminate the lease in the event where the building is to be renovated.
What happens if the building I live in is to be sold / demolished / repurposed?
The same termination terms will apply as with a fixed-term contract. It makes no difference to your tenancy if the building is sold. Your lease will still be valid after the property is sold. If the building is to be demolished or repurposed, the rules for renovation apply.
Can anyone get an indefinite lease?
Yes, anyone can get an indefinite lease.
Not valid for tenants living in the student apartments at Campus G12 (requires a student ID to live there).
I currently have a fixed-term lease. Can I switch to an indefinite lease?
You can switch to an indefinite lease next time your lease is up for renewal.
Not valid for tenants living in the student apartments at Campus G12 (requires a student ID to live there).