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 the 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes will be available soon.

Most housings in Singapore either set freehold or 99-year lease, with disorderly making the bulk.

A 999-year lease is nearly equivalent to freehold.

While 30-year-lease HDB studio apartments come into play short supply and merely meant for elderly home buyers.

Private developments with a 103-year lease period (the lease period is according to the developer) on freehold land are few and between. In the expiry among 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 to your price.

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

Homes in Singapore are predominantly 99-year leasehold given that 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 discover the land without any compensation to the home buyers. 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 bill.

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

Lessees may apply for renewal on the lease with the SLA (Singapore Land Authority). The granting of extension is on a case-by-case basis and are considered when the development is in line with Government’s planning intentions, maintained relevant agencies, and usually means that land use intensification, mitigation of property decay and preservation of community. If ever the extension is approved, a land premium, decided through the Chief Valuer, will pay. The new lease will not exceed the original, that’s why will function as shorter of 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 affinity serangoon fillings, for instance. will have to be borne by the current lessees.

For HDB flats, legally the flat will be returned to HDB at the end for the lease. HDB does not have to make any monetary compensation, or offer a substitute flat towards owners. The owners may be required to take out any fixtures fitting.