The ward mortgage is used to secure real estate financing for building plots .
When lending a property with a heritable building right , special regulations apply that are intended to guarantee ward security . In the past, the regulations were regulated in the Heritable Building Right Ordinance. Since 30 November 2007, the same content in is leasehold Law §§ 18-20 governed: A repayment mortgage on a domestic property is considered absolutely safe if half of the value of the ground lease is not exceeded and the scheduled repayment of the mortgage latest at the beginning of the fourth calendar year begins after the mortgage has been granted and ends no later than ten years before the leasehold expires.
Within the term of the mortgage, the leaseholder or his legal successor must be able to repay the mortgage from the income from the leasehold.
State legal regulations
Individual federal states can stipulate different regulations in the state legislation for the properties located within their area of application.