Changes in regulations regarding the lease of land owned or approved by a local government
As from 1 July 2018, new Cabinet Regulation No. 350 “Regulations of Land Rental and Building Rights of a Public Person” (hereinafter – Regulations), which prescribes a new procedure for the lease of land owned or approved by a local government, the procedures for calculating rent and other conditions, shall come into effect.
The Regulations prescribe that in the future, the local government will be able to send a land lease fee bill without entering into a land lease contract regarding a built-up land, the owner of the structure, the lawful possessor. The land lease is fixed for a built-in plot of land – 28 eur per year.
As regards the lease of unbuilt land, the new rules stipulate that the municipality will have to carry out an assessment of the land in order to determine the rent of the land, but in accordance with the rules, the land lease will not be less than EUR 28 per year per plot. The land may be transferred to the lease only in the order of the auction. Information regarding the land and auctions to be transferred to the lease will be located on the local government website.
The procedures for the leasing of land to be leased for the needs of auxiliary holdings shall remain in the previous order – the auction shall not be performed and the land lease fee, in accordance with Paragraph 2 of Regulation No. 12 of the municipality of Rēzekne of 18 January 2018 shall be 1,5 % of the cadastral value of the land, but not less than 4 eur per year.
These Regulations prescribe the procedures for granting of building rights. The decision to grant an unbuilt plot of land will be taken by the local government, the assessment of the plot of land for the calculation of the fee (a fee of not less than 28 eur per year) and these rights will be transferred to the auction procedure. For land lease contracts concluded before the entry into force of these Regulations, the land lease will remain after the previous order until the land lease contract expires. By extending the term of the lease contract, the auction procedure will not be applied, but the land lease will be applied in accordance with the new rules.
Cabinet Regulation No. 350 “Provisions of Land Rental and Construction Rights of a Public Person” available https://www.vestnesis.lv/op/2018/129.2
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The information was prepared by the Land Management Service of the municipality of Rezekne.