借地権

High Risk

Land Lease Right

What it means

With a 借地権 property, you own the building — but not the land it stands on. Instead, you hold a right to use the land and pay a monthly or annual ground rent (地代) to the landowner (地主). This is a fundamentally different ownership structure from standard freehold (所有権) property.

These arrangements are common in older urban neighbourhoods and some temple or shrine-adjacent areas. The listing price is typically much lower than a comparable freehold property, but there are significant ongoing costs and structural complications.

Types of 借地権

旧法借地権 (Pre-1992 law)

Very strong tenant protections. The lease effectively continues indefinitely unless the landowner can prove urgent personal need. Very hard to terminate. Most complex to deal with.

普通借地権 (Post-1992 ordinary lease)

Fixed initial term (30 years), renewable. Landowner still cannot easily refuse renewal without valid reason. Still complex for buyers.

定期借地権 (Fixed-term lease)

Set term (usually 50 years), not renewable. At the end of the term the building must be demolished and the land returned. The remaining term significantly affects value.

Why it matters

Ongoing ground rent — you pay 地代 every month indefinitely. This adds to your effective cost of ownership and can be renegotiated upward by the landowner.
Landowner consent required — selling the property, renovating, rebuilding, or subletting typically requires the landowner's written consent (承諾書), which may come with a fee (承諾料).
Financing is harder — banks are more cautious about lending on 借地権 properties. LTV ratios are typically lower.
Resale is more complex — buyers must also obtain landowner consent, limiting the buyer pool.
For 定期借地権 — remaining term determines value. A property with 15 years left on a 50-year lease is very different from one with 45 years remaining.

What to confirm before buying

Which type of 借地権 is this (旧法・普通・定期)? Read the original lease agreement.
What is the monthly/annual 地代? Has it changed in recent years? Is a renegotiation pending?
For 定期借地権: how many years remain on the lease?
What fees are payable to the landowner for sale consent (譲渡承諾料) and for rebuilding (建替承諾料)?
What is the relationship with the current landowner? Any disputes?

Questions to ask the agent (Japanese)

What type of leasehold is this and what are the terms?

借地権の種類（旧法・普通・定期）と契約条件を教えてください。

What is the monthly ground rent and when was it last revised?

地代はいくらですか？最後に改定されたのはいつですか？

What fees are payable to the landowner for sale and for rebuilding?

譲渡承諾料と建替承諾料はいくらですか？

Official source

借地権 is governed by the Act on Land and Building Leases (借地借家法, 1991). Pre-1992 leases fall under the old Land Lease Act (旧借地法). Consult a 司法書士 or 宅地建物取引士 to review the original lease agreement.

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