For people who own an apartment building

How we are compensating apartment building owners. Selling 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.

Two people and a apartment building
An initial discussion with an urban transformation manager will take place in plenty of time before the mining affects your property.

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. 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.

Technical assessment and valuation

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 apartments and the premises are valued separately

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.

Independent market valuation

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.

Valuation principles

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.

Our offer – a choice for your future

You can choose between:

An apartment building that is equivalent to what you have. The building will not be a copy of the old one, in terms of either architecture or materials. However, it will be comparable.A sum of money, equivalent to the market value plus 25 per cent.

Choosing an apartment building

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.

The location of the building

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.

Choosing money

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.

Who is responsible for what during the building process?

LKAB is responsible for making you, the property owner, the offer of a new apartment building or money. We are also responsible for ordering your new apartment building. Once the final inspection has been completed, LKAB's role is over.

The building contractor is responsible for ensuring that the building is constructed in accordance with the order, is responsible for the building guarantee and must fix any faults discovered during the inspection. The building contractor is also responsible for maintaining a dialogue with you during the guarantee period.

The property owner is responsible for ordering and paying for any extra options and for any tax effects, as well as the maintenance of green areas.

Sale

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.

Tenants do not need to move immediately once you have sold the property

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.