BGH Confirms Validity of Neighboring Ground Lease Rights
The Federal Court of Justice (BGH) has resolved the long-disputed question regarding the valid establishment of a ground lease right for a unified building spanning neighboring plots of land (so-called neighboring ground lease right) and recognized it as permissible.
Judgment of 19 December 2025: New Legal Certainty for Ground Lease Rights
By judgment of 19 December 2025 (V ZR 15/24), the BGH has departed from its previous case law and held that a ground lease right for an existing or yet-to-be-constructed unified building can be validly established even where it extends across neighboring plots of land. § 1 para. 3 ErbbauRG does not preclude this.
Significance for Project Developers and Real Estate Transactions
This landmark ruling on the validity of neighboring ground lease rights now offers greater flexibility for project developers and building owners and will also facilitate real estate transactions.
Open Questions and Need for Legal Advice
However, a number of issues requiring regulation remain unresolved, such as the contractual structuring and in rem securing of cross-boundary developments, their use, and in particular the legal consequences upon termination of the ground lease right.
Legal Advice on Neighboring Ground Lease Law
Do you have questions about ground lease rights, neighboring ground lease rights, or related contractual and in rem requirements? We are happy to advise you. Contact us at info@kfr.law