Freehold Residential Property: The Benefits of 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 possibly be available early.

Most housings in Singapore either in the latter group freehold or 99-year lease, with the latter making along 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 just meant for elderly home buyers.

Private developments with a 103-year lease period (the lease period is determined by the developer) on freehold land are few and far between. At the expiry for this lease, the non-governmental land owner gets right to re-acquire the land (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 in order to in several years’ time when development on the very 60-year leasehold residential land plot at Jalan Jurong Kechil is carried out.

Homes in Singapore are predominantly 99-year leasehold ever since 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 discover the land without any compensation for the home operators. Currently, the government doesn’t offer freehold land parcels for sales anymore, apart from the sale of remnant State land to the adjoining landowner whose existing private land is already held under a freehold bill.

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

Lessees may apply for renewal for this lease with the SLA (Singapore Land Authority). The granting of extension is on the case-by-case basis and will be considered if the development is in line with Government’s planning intentions, held 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 from your Chief Valuer, will be charged. The new lease will not exceed the original, that’s why will as the shorter on the original assaulted lease in step with URA’s planning intention.

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

For HDB flats, legally the flat will be returned to HDB in the end from the lease. HDB does not possess to make any monetary compensation, or offer property flat to your owners. The owners may additionally be required to get any fixtures fitting.

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