Freehold Residential Property: The Reasons why you are Acquiring One

Homes in Singapore come with 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 your initial 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes will be available early.

Most housings in Singapore either in the latter group freehold or 99-year lease, with the latter making within the bulk.

A 999-year lease is close to equivalent to freehold.

While 30-year-lease HDB studio apartments are available short supply and just meant for elderly home buyers.

Private developments with a 103-year lease period (the lease period is contingent on the developer) on freehold land are few and affinity serangoon much between. In the expiry for this 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 for their price.

Residential properties with 60-year lease aren’t available yet, but is in several years’ time when development on the first 60-year leasehold residential land plot at Jalan Jurong Kechil is carried out.

Homes in Singapore are predominantly 99-year leasehold because the government sells most hits 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can acquire the land without any compensation on the home individuals. Currently, the government doesn’t offer freehold land parcels for sales anymore, besides the sale of remnant State land to the adjoining landowner whose existing private land is already held within freehold book.

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

Lessees may apply for renewal for this lease without the pain . SLA (Singapore Land Authority). The granting of extension is on a case-by-case basis and are considered when the development inside line with Government’s planning intentions, sustained by relevant agencies, and creates land use intensification, mitigation of property decay and preservation of community. Generally if the extension is approved, a land premium, decided from your Chief Valuer, will be charged. The new lease will not exceed the original, that’s why will work as the shorter of your original or the lease in step with URA’s planning intention.

In addition, near finish of the lease period the State may require land to be returned in the original health conditions. If so, demolition of buildings, land fillings, numerous others. will have to be borne coming from the current lessees.

For HDB flats, legally the flat will be returned to HDB at the end of this lease. HDB does n’t have to make any monetary compensation, or offer a replacement flat to the owners. Owners may be required to get any fixtures fitting.

Posted by flanagan