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Swiss Pensioner Loses Rental Income Over Illegal Studios

by Emily Johnson - News Editor
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  • A 65-year-old retiree in Neuenegg is losing her two rented studios and a vital source of income.
  • The Federal Court ordered the demolition because the rooms were never approved for residential use.
  • The studios are uninhabitable because they are ten centimeters too low and located below ground level.

A decades-long housing arrangement is coming to an end for a 65-year-old woman in Neuenegg, Switzerland, as a court ruling requires her to demolish two studio apartments she has been renting out. The decision, handed down by the Federal Court on February 17, 2026, threatens a significant portion of her retirement income. The case underscores the complexities of property regulations and their impact on individuals.

Basement Rooms Converted to Studios in 1974

The trouble stems from a 1974 conversion of basement storage rooms into residential studios by the woman’s father. No permits were obtained for the change of use, and the issue remained unnoticed until recently. When the current owner inherited the property in 2003, she was unaware of any legal complications. “As far as I can remember, they’ve always been apartments,” she told Beobachter.

The two studios generate 1,400 Swiss francs per month, a crucial supplement to her monthly pension of 2,000 francs from the AHV and 800 francs from her pension fund. Currently, the apartments are occupied by two Eritrean refugees, one of whom recently completed an apprenticeship in Neuenegg, and will now be forced to find new housing.

Neighborhood Dispute Revealed Building Code Violations

The situation came to light following a dispute with a fellow homeowner. A neighbor sought to build three parking spaces on a grassy area near the studios, prompting the retiree to object, fearing it would devalue her property. Before any permits were issued for the parking spaces, the neighbor inquired with the local municipality about the legal status of the studios. This led to the discovery that the apartments had never been officially approved for residential use.

Because a co-owner wanted to build parking spaces in front of the pensioner’s studios and she opposed it, the building code registration of the rooms was checked. (Symbolic image)Getty Images

The court determined the basement rooms were unsuitable for residential use, citing both their location below ground level – raising concerns about moisture and mold – and a height of 2.30 meters, ten centimeters short of the required 2.40 meters. The court also ruled that a long period of use did not establish legal rights to continue the unauthorized occupancy.

The 65-year-old argued that she was unaware of any issues when she inherited the property in 2003, stating that the apartments had always been registered and recognized for tax purposes.

“I Didn’t Imagine Retirement Would Be Like This”

Adding to the financial strain, the municipality is now considering a building permit for the neighbor’s parking spaces, despite the initial concerns. Although authorities maintain they are acting in accordance with the law, the retiree faces approximately 15,000 Swiss francs in demolition costs, in addition to a 100,000 franc mortgage on the property. To make ends meet, she has returned to part-time function at a local nursing home. “I didn’t imagine my retirement would be like this,” she said.

Are you worried about your retirement savings, especially in light of unexpected problems?

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Reto Bollmann

Reto Bollmann (bre), born in 1991, has been strengthening the 20-minute news desk as a reporter since the end of 2021. He has a preference for political, scientific and historical topics.

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