Selling your share in a property is a big decision, a long process and an important transaction. Here you will find everything you need to know prior to any sale and information on how the process works.
You, as an owner of a condominium, own your property as a member of a condominium association. It is therefore the association that owns the property, and you as a member own a share of the association and the right to use your condominium. LKAB will buy the condominium association's property for the total value of all the condominiums in the association.
Well in advance of mining affecting your condominium and current infrastructure, LKAB will inform you about when you will be impacted by the urban transformation. LKAB holds regular information meetings and maintains close dialogue with those affected, both directly with you as a condominium owner and with the board of your condominium association. The condominium association will be contacted by an urban transformation representative from LKAB.
LKAB, in collaboration with external experts, has devised a special model for purchasing the properties of private housing cooperatives, a model that provides security by being financially sustainable and long term.
This means that LKAB’s offer will enable you to invest in brand new accommodation of equal value.
You will receive compensation based on a market value per square metre of living space for a brand new apartment in new Kiruna or Gällivare. The compensation per square metre of living space constitutes the largest part of the compensation. You will, therefore, receive a sum of money based on the size of your apartment, measured in square metres.
You will also get a supplement based on an individual assessment of the condition and standard of your current apartment. Factors considered to be value-enhancing features include view, floor plan, flooring, balcony location, renovated kitchen and bathroom and the age of wallpapering and painting. This assessment is carried out by an independent party appointed by LKAB and the board of the housing cooperative.
In order for the sale to LKAB to be completed, the cooperative must purchase the property rights off all of the cooperative members. The sum thus consists of the total value of all the individual apartments in the property.
An agreement will then be signed by LKAB and the housing cooperative that makes LKAB the owner of the property. The agreement will be supplemented with a lease agreement, which means you, as an apartment owner, are entitled to remain in the property for a time as a tenant of LKAB Fastigheter.
On the same day as LKAB acquires the property, the purchase sum will be paid to the housing cooperative and you will then receive your compensation. The purchase is not valid until the cooperative meeting has voted in favour of selling the property to LKAB.
Keep in mind taxes if you sell at a profit. For more information, visit the Tax Authority’s website or contact your nearest tax office.
LKAB's offer provides you with the opportunity to invest in another residence. You will have priority when purchasing a newly constructed condominium developed under LKAB's supervision at the same square meter price for which you have been redeemed.
The price per square meter applies up to the equivalent number of square meters as the redeemed condominium unit. The priority right is based on a first-come, first-served principle. Through your priority, you will have the opportunity to express interest in the condominiums you are interested in. We will not match based on function but only offer priority to purchase a newly constructed condominium.
The opportunity for priority to a new condominium applies to those whose condominium has been redeemed by LKAB after June 2022.
We will do our best to answer your questions about when you will be affected, where you can move, and how the relocation will happen. However, it can often be challenging to provide straightforward and simple answers because LKAB does not control the entire transformation process, and many parties are involved.
Here, we have compiled the most common questions and answers that we typically address in the process for those who own a house.
People living in a tenant-owner apartment are compensated with a sum of money. LKAB’s offer is made up of two parts. The compensation is an amount per square metre of living space that corresponds to the square metre price for a newly built tenant-owner apartment in Malmfälten and an additional amount based on individual assessment of the condition and standard of the present apartment.
This allows the association’s members to choose between buying a newly built tenant-owner apartment in Malmfälten with the money they get from LKAB or doing what they want with the money. It’s important for us that the individual can choose to move to a new home.
Read more about private housing cooperative owners’ compensation here.
Check if you are concerned at “Time to move”, where you can find out if and, if so, when you will have to move.
Time to move Malmberget
Time to move Kiruna
LKAB pays for everything that is affected. The Swedish Minerals Act states that mining companies that cause damage to the surrounding area must pay for the damage. LKAB will therefore pay the major part of the cost of the urban transformations in Malmberget and Kiruna. Other players will pay some of the cost themselves because they will be talking the opportunity to construct new buildings or convert existing ones when the communities change.
