For people in a private housing cooperative

How we are compensating people in a private housing cooperative. 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 about how the process works.

A private housing cooperative
Members of private housing cooperatives receive a sum of money based on the size of their apartment, measured in square metres.

You own your property jointly

If you are a member of a private housing cooperative, you own the property together with the other members of the cooperative as a result of your membership of the housing cooperative. The cooperative therefore owns the property, and you as a member own a share of the cooperative and the right to use your apartment.

LKAB will buy the housing cooperative's property for the total value of the individual apartments that make up the cooperative. However, before LKAB can purchase the entire property and before an agreement can be signed, each individual apartment has to be assessed. Therefore, LKAB wishes to have a dialogue with both you as an apartment owner, and with the housing cooperative as a whole, as represented by the board.

In order for a sale to be completed, the housing cooperative must sign a declaration of intent with LKAB. This states that LKAB and the housing cooperative will work together towards a common goal – a sale of the property to LKAB. The declaration of intent is not a legally binding document.

The initial meeting

In plenty of time before the mining affects the existing buildings and your property, you will receive information on when you will be affected by the urban transformation. We understand that you will have a lot of questions. Thoughts about when you will be affected, where you will go and how the move will work are completely natural and we will respond as best we can.

LKAB will hold regular information meetings and maintain a close dialogue with those of you affected, both with you directly as the apartment owner and with the board of your housing cooperative. An urban transformation manager from LKAB will contact you to arrange an initial meeting.

If you are unsure about whether you will be affected and when, test our move tracker at "Time to move":
Time to move Malmberget.
Time to move Kiruna.

How your apartment will be assessed

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.

LKAB's offer is based on two elements:

  • The market value of a brand new apartment in Malmfälten.
  • Individual assessment of the condition and standard of your current apartment.

This means that LKAB's offer will enable you to invest in brand new accommodation of equal value.

 

Our offer

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 views, 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.

Cooperative meetings

In order for the cooperative to make a decision on selling the property to LKAB, two of each of the following cooperative meetings must be held. In order for the purchase to be approved, at least half of the members present at the first meeting must vote in favour of a sale. At the next meeting, at least two-thirds of the members present must vote in favour of a sale.

Sale

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 that 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.

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.

After the sale

Once the property has been sold to LKAB, you do not necessarily have to move immediately. You can choose to remain in the property for a limited time as a tenant of LKAB Fastigheter until the area is to be demolished.