Freehold Residential Property: The Reasons why you are Acquiring One

Homes in Singapore include different lease periods:

30-year lease (HDB studio apartments)

60-year lease (private housings)

99-year lease (executive condominiums, private housings, all HDB flats except for studio apartments)

103-year lease (private housings) (Theses houses sit on freehold land owned by private developers.)

999-year lease (private housings)

Freehold (private housings)

*A land at Jalan Jurong Kechil is the first 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes tend to be available soon.

Most housings in Singapore either belong to freehold or 99-year lease, with however making the bulk.

A 999-year lease is almost equivalent to freehold.

While 30-year-lease HDB studio apartments are available short supply and basically meant for elderly residents.

Private developments with a 103-year lease period (the lease period is a point of the developer) on freehold land are few and between. At the expiry from the lease, the non-governmental land owner have the right to re-acquire dirt (i.e. reversionary right), sell the freehold tenure or extend the lease of a price.

Residential properties with 60-year lease aren’t available yet, but is in a few years’ time when development on site to website 60-year leasehold residential land plot at Jalan Jurong Kechil is done.

Homes in Singapore are predominantly 99-year leasehold for the reason that government sells most arrives at 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can obtain the land with compensation into the home buyers. Currently, the government does not offer freehold land parcels for sales anymore, except for the sale of remnant State land to the adjoining landowner whose existing private land is already held inside freehold book.

However, topping up of the lease of leasehold private housings is allowed.

Lessees may apply to get renewal on the lease with the SLA (Singapore Land Authority). The granting of extension is on a case-by-case basis and seem considered generally if the development open for line with Government’s planning intentions, sustained by relevant agencies, and usually means that land affinity serangoon use intensification, mitigation of property decay and preservation of community. When the extension is approved, a land premium, decided through the Chief Valuer, will be charged. The new lease will not exceed the original, however it will as the shorter of the original and your lease consistent with URA’s planning intention.

In addition, near the conclusion of the lease period the State may want the land in order to become returned in its original complications. If so, demolition of buildings, land fillings, etc. will have to be borne coming from the current lessees.

For HDB flats, legally the flat will be returned to HDB in the end of the lease. HDB does not have to make any monetary compensation, or offer a replacement flat to your owners. Owners may even be required to remove any fixtures fitting.