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, affinity serangoon 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 soon.

Most housings in Singapore either set freehold or 99-year lease, with the latter making up 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 contingent on the developer) on freehold land are few and far between. In the expiry belonging to the lease, the non-governmental land owner delivers the right to re-acquire ground (i.e. reversionary right), sell the freehold tenure or extend the lease of a price.

Residential properties with 60-year lease are not available yet, but always be in several years’ time when development on the very 60-year leasehold residential land plot at Jalan Jurong Kechil is finished.

Homes in Singapore are predominantly 99-year leasehold given government sells most visits 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can acquire the land any kind of compensation to your 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 on the lease of leasehold private housings is allowed.

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

In addition, near the finish of the lease period the State may have to have the land to be returned in the original conditions. If so, demolition of buildings, land fillings, etc. will have to be borne by the current lessees.

For HDB flats, legally the flat will be returned to HDB at the end for this lease. HDB does don’t have to make any monetary compensation, or offer a fresh one flat towards owners. The owners may be also required to get any fixtures fitting.