Partial Freehold Acquisition

Dividing the Association - From Co-op to Private Ownership

Partial freehold acquisition means that some of the cooperative apartments are converted to private ownership while the rest remain as co-op apartments.

Members who wish to own their townhouse outright will buy it, while other members will remain with their co-op apartments. This buyout is done on a voluntary basis, unlike a full buyout where all members must participate.

In a partial buyout, the cooperative association continues to exist but with fewer members. For those who buy out, the monthly costs are usually reduced by 500 - 2,500 SEK per month, depending on the size of the house.

The reduction in monthly costs can be broken down into three components:

30 percent tax deduction on interest paid on loans;
Additional costs for the association, such as management fees, depreciation, and other administration, cease;
As a property owner, you can decide the amount of amortization on the assumed loan.

Future property owners will further reduce their monthly costs through personal labor or by using ROT deductions for exterior maintenance, which a housing cooperative cannot take advantage of.

Forum has the collective expertise to carry out a partial buyout where the interests of all members are considered.

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