Grindavík homebuyers to pay 2% upfront under repurchase plan

People buying back homes in Grindavík will pay 2% of the purchase price when they sign, with a further 3% due in January 2028, mbl.is reports. The terms were announced by Arnar Viðars Skúlason, chief executive of the real estate company Þórkatla, at a presentation by the Prime Minister’s Office and Þórkatla.

The repurchase plan will let former residents buy properties back for the same prices Þórkatla paid for them after the volcanic activity on the Reykjanes Peninsula. The first phase is planned for early 2027 and will be aimed specifically at Grindavík residents. The arrangement is similar to renting with an option to buy.

Buyers will make an initial payment of at least 5% of the purchase price. Monthly rent-to-buy payments will be based on the remaining balance. In 2027, the annual rate will be 4% of that balance, with a quarter of payments going toward building equity and the remaining 75% covering financing costs. From the start of 2028, the rate will rise to 5%, with 40% of payments going toward equity and 60% toward financing costs.

The first four months will be rent-free, provided they fall within 2027. Buyers will still have to pay for heating, electricity, fire insurance and property taxes.

Buyers will have up to three years to return the property without conditions and receive their initial contract payment back. Contracts will end no later than January 31, 2030. In 2029, Þórkatla will consider whether to extend the return period by two years, depending on conditions in Grindavík.