How does ground lease work and how does it affect my purchase?

Ground lease ("tomträtt") means you own the house but rent the land from the municipality through a long-term agreement, paying annual ground rent ("tomträttsavgäld") instead of owning the land. The rent can increase significantly when renegotiated (usually every ten years). Banks usually approve loans but may include the rent in their KALP calculations ("KALP-kalkyl"). For housing associations ("bostadsrättsföreningar") with ground lease ("tomträtt"), rent increases lead to higher monthly fees ("månadsavgifter"). Check when the agreement was last renegotiated and calculate how increases would affect your total housing cost ("boendekostnad").