andelsbolig

An andelsbolig is a form of housing common in Denmark where residents do not own the apartment outright. Instead, a buyer purchases a share in an andelsboligforening, a housing cooperative that owns the building. The holder of the share has the right to occupy a specific apartment, while the cooperative owns the property and manages common areas and finances. Residents typically pay a monthly housing contribution, known as a boligsafgift or similar, to cover operating costs, maintenance, and any debt related to the building. Buyers often need a mortgage as part of financing the share purchase.

Ownership and governance are organized through the cooperative. Members elect a board and participate in general meetings. The association’s vedtægter (statutes) define admission criteria, rules for major decisions, and procedures for repairs and financial oversight. The cooperative is responsible for long-term planning and the upkeep of the building, while individual members contribute to shared costs.

Valuation and sale of an andelsbolig differ from freehold property sales. When selling a share, the price is usually regulated by the cooperative’s price rules and formula, and the sale typically requires approval by the board or a sales committee. This can limit resale profit compared with market-based transactions, though it aims to provide price stability and fair access for new residents. The buyer must also be approved by the association according to its vedtægter.

Financing and taxes are typical considerations. Buyers may use an andelsboliglån or bank financing based on the share value and expected boligafgift. Taxes and fees related to purchase and sale apply as in other real estate transactions, subject to Danish tax rules.

Overall, andelsbolig offers a community-owned housing option with potentially lower entry costs and regulated resale pricing, balanced against restrictions on ownership and sale.