For decades, Israeli citizens purchased their homes on land leased to them under long-term lease agreements. In practice, the public paid full price for their apartments, and leaseholder rights were perceived as equivalent to ownership. The expectation was that the leases would also be extended in the future.
In the first decade of the 2000s, the state regulated the rights of leaseholders on land it owns which constitutes about 93% of Israel’s land and granted urban leaseholders full ownership of their apartments (free of charge for those in multi-unit housing, and for those not in multi-unit housing in exchange for payment). However, the state did not regulate the rights of leaseholders on land that is not state-owned.
After the state regulated the rights of leaseholders on land it owns, private business entities began to purchase land that is not state owned, most often from churches, in large scale transactions that frequently include land covering entire neighbourhoods. This is not a matter of purchasing a single apartment, and our struggle does not concern those who purchased an apartment here or there, but rather the acquisition of rights in land on which sometimes hundreds and even thousands of homes are built. After the purchase, these entities demand extremely high payments from leaseholders in order to extend the lease, to acquire ownership, or to give up other rights they have in their homes, even though the leaseholders have already paid the full consideration for their homes.
This situation creates uncertainty and harms leaseholders years before the end of the lease term:
It is difficult to sell the apartments at a realistic price.
It is difficult to obtain mortgages.
People are reluctant to invest in renovation and strengthening of the buildings.
Property values erode from year to year.
The Headquarters for Saving Apartment Leaseholders in Israel is a non profit organization established by residents of neighbourhoods in Jerusalem whose homes were built on privately owned land leased under long term lease agreements. The members of the organization operate entirely on a voluntary basis, without profit motive. The organization is not a political or commercial body.
To regulate the rights of leaseholders on land that is not state owned and to allow them to continue to hold their homes under fair and reasonable conditions.