fellesgjeld

Fellesgjeld is the joint debt of a Norwegian housing cooperative, such as a borettslag or sameie. The debt is incurred to finance the acquisition, construction, or modernization of the property and is held by the cooperative as a whole. The loan is secured against the property, and its terms influence all members of the cooperative.

Each unit within the borettslag bears a share of the fellesgjeld. This share is reflected in the monthly felleskostnader, which cover both the operating costs of the building and the service payments on the cooperative’s debt (interest and amortization). The exact allocation is typically based on factors such as the unit’s size or value and the cooperative’s debt structure.

Fellesgjeld differs from a private mortgage on an individual unit. While residents may have individual mortgages, the fellesgjeld is a collective liability that the cooperative assumes and then distributes among its members through the monthly charges. The size of a unit’s share affects both the ongoing costs of ownership and the ease with which a buyer can obtain financing.

Implications for buyers and owners include that a higher fellesgjeld increases monthly costs and can influence the market value of a unit. The debt level also affects the cooperative’s financial flexibility; if repayment obligations rise or refinancing is needed, felleskostnader can be adjusted. In extreme cases, financial difficulties within the cooperative can lead to higher charges or special assessments.

Transfer on sale: when a unit is sold, the buyer typically assumes the unit’s share of fellesgjeld as part of the ongoing felleskostnader, unless otherwise arranged in the sale contract. Fellesgjeld is therefore a central factor in the economic planning and risk assessment for both owners and prospective buyers.