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 your initial 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes get available ultimately.

Most housings in Singapore either set 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 presented in short supply and basically meant for affinity serangoon 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 far between. At the expiry of the lease, the non-governmental land owner have the right to re-acquire turned (i.e. reversionary right), sell the freehold tenure or extend the lease to your price.

Residential properties with 60-year lease are not available yet, but in order to in a few years’ time when development on the main 60-year leasehold residential land plot at Jalan Jurong Kechil is finished.

Homes in Singapore are predominantly 99-year leasehold given that the government sells most lands on 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can buy the land with compensation for the home owners. Currently, the government does not 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 under a freehold title.

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

Lessees may apply for a renewal for this lease without the pain . SLA (Singapore Land Authority). The granting of extension is on a case-by-case basis and seem considered if for example the development is actually in line with Government’s planning intentions, sustained by relevant agencies, and just ends up with land use intensification, mitigation of property decay and preservation of community. When the extension is approved, a land premium, decided through the Chief Valuer, will pay. The new lease will not exceed the original, and it will work as the shorter belonging to the original or the lease in step with URA’s planning intention.

In addition, near finish of the lease period the State may want the land with regard to returned in the 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 for this lease. HDB does n’t have to make any monetary compensation, or offer a substitute flat into the owners. Owners may be required eradicate any fixtures fitting.