Do you own an apartment building? Here's all the information you might need about the compensation and moving process. We will do our best to provide you with the support you need to ease the transition.
In good time before the mining affects your property, you will receive information on an expected time frame. An urban transformation representative from LKAB will contact you to arrange an initial meeting.
An independent property valuer will carry out a market valuation while you and LKAB's urban transformation manager carry out a technical assessment of your existing apartment building. You will then receive an offer from LKAB of a new property or financial compensation and can make your choice accordingly.
The technical assessment will be carried out by LKAB’s urban transformation manager and you as the property owner. In order to determine the condition and size of your apartment building, you will analyse value-enhancing factors.
The apartment building is valued as a whole, but in addition, the apartments and the premises will be scored separately in order to determine the standard of the apartment building. Factors that affect the valuation include ceiling height, balcony and extra toilet.
The independent property valuer will determine the economic value of your property. The valuation also includes a description of the condition and standard. The valuation forms the basis for compensation if you choose financial compensation instead of a replacement building.
Your property will be analysed according to specific equipment and furnishing levels based on building codes and scoring systems. The results will be translated based on the scoring system devised by the Swedish Association of Public Housing Companies (SABO) and the Swedish Union of Tenants (Hyresgästföreningen). The scoring system takes as its starting point features that tenants generally value in apartments.
Overall, your current apartment building will be scored and categorised as normal, good or high standard after the valuation. Based on that, you will receive a proposal for a replacement building from LKAB. We will maintain a close dialogue with you to find a suitable solution.
If you choose an apartment building, you will be offered a replacement building suitable for your business and equivalent to the one you own today. The nature of the building will depend on the building contractors with which LKAB cooperates, the technical assessment and the market value of your apartment building.
The new apartment buildings will be built in accordance with modern construction methods. The floor space will be used to maximum effect, but the number of apartments and premises will be maintained as far as possible. In addition, you can place additional orders, such as raising the standards or increasing the size of the apartments and the premises. The available options will depend on the offering of the building contractors. Additional options will cost extra and you should order them from and pay the building contractor directly, based on a separate contract.
LKAB owns land within the urban area that is not affected by mining. In discussion with you, we will try to find solutions that meet your needs and preferences regarding location. You will sign an agreement when you sell your property to LKAB. This will give LKAB access to the land that your current building stands on, and in return you will receive the land that your future apartment building will be situated on.
If you choose money instead of a new building, you will receive a lump sum from LKAB. The amount will be the market value in accordance with the valuation plus a premium of 25 per cent.
Once you have made your choice in discussion with LKAB's urban transformation manager, the process will differ, depending on what you have chosen.
If you have chosen a new apartment building, you will sign an agreement and LKAB will order the building. You will purchase any options directly from the building contractor and construction will commence.
If you have chosen financial compensation, you and LKAB will sign an agreement. On the agreed completion date, LKAB will pay the purchase sum to you as the property owner.
Remember you will have to pay tax if you sell at a profit. For more information, visit Skatteverket’s website or contact your nearest tax office.
Once the property has been sold to LKAB, your tenants do not necessarily have to move immediately. We will decide jointly how to inform your tenants that you have sold the property to LKAB. If your tenants choose to remain in the property for some time, they will sign a lease agreement with LKAB Fastigheter.
We understand that as the owner of a rental property, you may have many questions and concerns about how the transformation will impact you and your tenants. We will do our best to provide answers to all your questions regarding the timing of the impact, alternative locations for your rental property, and how any potential relocation will be carried out. It's important to note that it can be challenging to provide clear and simple answers as LKAB does not control the entire transformation process and there are several parties involved.
Here, we have compiled the most common questions and answers for you as an owner of an apartment building.
House owners and property owners who own rental apartment buildings are offered a choice between a replacement building that is equivalent to their present one or a sum of money amounting to the property’s market value plus 25 per cent. The new building will not be a copy of the old one either as regards architecture or material. But it will be comparable. LKAB collaborates with various construction contractors and will order a new building if the owner chooses a replacement building instead of money.
Read more about house owners’ compensation here.
Read more about apartment building owners’ compensation here.
Yes, as far as it can be. If conditions change, the timetables will of course have to be adjusted but the aim is to be able to work according to the timetables we have today.
No. LKAB only compensates people who have to move due to its mining operations.
