Short answer: 借地権 (shakuchiken, "leasehold right") on a listing means the seller owns the building but rents the land from someone else (the 地主, landowner). You would buy the building and take over the lease. Leasehold houses are legitimately cheaper — often a fraction of a freehold equivalent — but you pay ground rent every month, you need the landowner's consent (and usually a fee) to buy, to rebuild and to sell on, and most banks will not lend. It can be a good deal for a long-term resident; it is a poor deal for anyone who might want to sell in a few years.
Japan separates ownership of land and buildings. With a leasehold house you would hold:
The listing will usually say 土地: 借地権 or 権利形態: 借地権, and give the monthly ground rent (地代) and the remaining term (残存期間). If it says 所有権, the land is freehold and this guide does not apply.
| Old-law leasehold (旧法借地権) | Ordinary leasehold under the 1992 Act (普通借地権) | Fixed-term leasehold (定期借地権) | |
|---|---|---|---|
| Contracts made | Before 1 August 1992 (and renewals of those) | From 1 August 1992 | From 1 August 1992 |
| Renewal | Landowner can refuse only with "just cause" (正当事由), which courts rarely accept; in practice renews indefinitely | Same just-cause rule; first term 30 years, renewals 20 then 10 years | No renewal. Land returns to owner at expiry (residential: 50 years or more); building must be removed unless otherwise agreed |
| Typical on akiya | Very common — most cheap leasehold houses are old-law | Less common on old houses | Rare on old houses; common on 1990s–2000s subdivisions |
| What it means for a buyer | Effectively a permanent right to keep a house there, subject to rent and consent rules | Similar in practice | Your right ends on a fixed date; value falls toward zero as it approaches |
Source: Act on Land and Building Leases (借地借家法), Art. 3–6 (term and renewal), Art. 22 (fixed-term), and its supplementary provisions keeping the old Land Lease Act rules for pre-1992 contracts. Which regime applies depends on the original contract date, not the latest renewal. Ask for the contract.
Because the land is not yours, three events need the landowner's involvement. The customary fees below are market practice, widely cited in Japanese brokerage and appraisal materials; they are negotiable and vary by region.
| Event | Consent needed? | Customary fee (目安) |
|---|---|---|
| Buying the house (transfer of the lease) | Yes — 譲渡承諾 | Transfer consent fee (譲渡承諾料): around 10% of the leasehold value, often paid by the seller |
| Rebuilding, or major structural change | Yes — 建替承諾 | Rebuild consent fee (建替承諾料): a few percent of the land's freehold value, commonly cited as 3–5% |
| Renewal at term end (old-law / ordinary) | Automatic in practice, but a fee is customary | Renewal fee (更新料): often several percent of land value, or a multiple of annual rent, depending on local custom and the contract |
| Changing use (e.g. to a shop) | Yes — 条件変更承諾 | Case by case |
If the landowner refuses consent to a transfer or rebuild without good reason, the court can grant permission in place of the landowner (借地非訟, Art. 19–20 of the Act), usually on payment of a fee it sets. This protects you, but it is slow and costs legal fees; a cooperative landowner is worth checking for before you buy.
Ground rent (地代) for residential leasehold is typically set by local custom at a level somewhere around two to three times the annual fixed-asset tax and city-planning tax on the land — for a rural akiya lot with a low tax assessment that can be a few thousand yen a month; in a city it can be tens of thousands. The landowner may request an increase when taxes or land prices rise (Art. 11), and you may request a decrease; disputes go to mediation and then court. Ask for the current rent, the last increase, and whether rent is in arrears (unpaid rent by the seller can be grounds for the landowner to terminate the lease, which would leave you with a building on land you cannot use).
Appraisers value a leasehold at a share of the freehold land value using the "leasehold ratio" (借地権割合) published on the National Tax Agency's road-value maps: 30–90% depending on location, with 60–70% typical in residential areas of cities and lower in rural areas (source: 国税庁 路線価図). Yet listings often price leasehold akiya far below even that share, because:
So the discount is real for a buyer who will live there long-term, pay rent reliably and does not need to borrow or sell soon. It is not a bargain for a buyer planning to flip, to rent out short-term (use change may need consent), or to hold a fixed-term lease into its last decade.
| Japanese | English | Why |
|---|---|---|
| 借地契約書の写しをください。契約の当初締結日はいつですか。 | Please send the lease contract. When was it originally signed? | Old-law vs 1992 Act vs fixed-term |
| 旧法借地権ですか、定期借地権ですか。残存期間は。 | Old-law, ordinary or fixed-term? Remaining term? | Fixed-term with under ~20 years left is a different product |
| 地代は月いくらで、滞納はありませんか。直近の改定はいつですか。 | Monthly rent, any arrears, last revision? | Arrears can void the lease |
| 譲渡承諾は地主から得られていますか。承諾料はいくらで、誰が負担しますか。 | Has the landowner consented to the transfer? Fee amount and who pays? | No consent, no purchase |
| 建替えの可否と建替承諾料の目安を教えてください。 | Can it be rebuilt, and what is the rebuild consent fee? | Old houses will need rebuilding eventually |
| 地主は個人ですか法人ですか。連絡は取りやすいですか。 | Is the landowner an individual or company? Easy to reach? | Absentee or deceased landowners stall everything |
| 底地を買い取れる可能性はありますか。 | Is there any possibility of buying the freehold (底地)? | Buying the land later converts the house to freehold |
Yes. There is no nationality restriction on leasing land or owning a building. The landowner can, however, refuse consent to a particular buyer for reasons like creditworthiness; a Japanese-speaking contact and proof of ability to pay rent help.
After a period of arrears and a demand, the landowner can terminate the lease. You would then own a building on land you have no right to use and could be required to remove it. Set up automatic payment from day one.
You pay fixed-asset tax on the building. The landowner pays the tax on the land and recovers it through your ground rent.
Ordinary residential letting of the building is generally allowed without consent, but many contracts restrict use, and short-term guesthouse use may count as a change of conditions. Read the contract and ask.
Yes. The report parses 借地権, 地上権 and 定期借地 from the listing, rates leasehold as RISK for financing and resale, and attaches the consent and rent questions above. It cannot read the lease contract, so the old-law / fixed-term distinction is one you must confirm from the document.
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Get a $49 risk report Free 12-point checklistThis guide is general information based on public sources cited above. It is not legal, tax, or real-estate brokerage advice. Confirm every item for a specific property with the agent, the municipality, and licensed professionals.