Where does the value go when an apartment is demolished?
I've just bought an apartment built in 1974. It's six apartments in a wooden house in Norway. There are also many apartments in Norway that are 100 years old, but some of the timbers are already quite dilapidated. I have 35 years to pay off the loan; I'll be 67 by then. If I live there for another 30 years (one wants to be optimistic), and at some point the whole thing is demolished due to age, what will happen to its value? Is there insurance against this, or is the value then destroyed? I would appreciate any expert answers or reports from people who have had experiences with it.
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If you, or the owners together, don’t even think that the house is longer, then the money is lost when the house is torn off.
If it is a wooden house and it has to be demolished, then logically there is no more value (in a wooden house hardly a single apartment can be torn off). Why would the state give you money? However, the property is worth something. And as lands traditionally rise in price, you can usually expect good sales revenues (for 6 apartments with a sixth, unless the property belongs to only one owner).
Of course, it could be that the state gives money in all old houses, it would make sense at least if the substance were no longer to be saved. Finally, in the interest of the state, the building substance is preserved.
However, it is not in the interest of the State to compensate for lack of maintenance by the owners.
If then there are at most grants to renovate in important building monuments. But certainly not for any residential house.
https://stephanwalochnik.de/was-ist-die-lebendauer-ein-eigentumswohnung/
The value is gone. You could ask so well, “What happens with the value of a 100€ bill when I burn it?”
That’s true…