Asked by Anonymous Tan
Hi, I would like to enquire if there are any issues that one should be aware of in the following situation (this arises from some complicated issues/background):
-Son (say approx 31 years old), together with his fiancee (approx 27 years old) intends to buy over his father's HDB flat at commercial/arms' length value
-The HDB flat (5 room) has 59+ years left on the lease and has been fully paid off for quite some time already
I am aware that the amount of CPF that can be used and the amount of loan that may be disbursed would be affected because the remaining lease cannot cover the buyer/youngest buyer till 95 years of age.
Some questions I have:
-Apart from the above, would there be any issues getting a HDB loan or bank loan because the transaction is from father to son? The transaction is intended to be transacted at market value.
-Any other issues because the transaction is from father to son?
-Separately, if son intends to buy the flat in his sole name with the fiancee listed as an occupier, how would HDB assess the income for purposes of HDB loan eligibility? Assuming the son earns about $10k a month and the fiancee earns $5-6k a month. Would HDB allow the loan to be given based on the son's income of $10k or will they see the income as being $15-6k even though the fiancee is not going to be an owner of the flat but just an essential occupier?
Thank you!
-Son (say approx 31 years old), together with his fiancee (approx 27 years old) intends to buy over his father's HDB flat at commercial/arms' length value
-The HDB flat (5 room) has 59+ years left on the lease and has been fully paid off for quite some time already
I am aware that the amount of CPF that can be used and the amount of loan that may be disbursed would be affected because the remaining lease cannot cover the buyer/youngest buyer till 95 years of age.
Some questions I have:
-Apart from the above, would there be any issues getting a HDB loan or bank loan because the transaction is from father to son? The transaction is intended to be transacted at market value.
-Any other issues because the transaction is from father to son?
-Separately, if son intends to buy the flat in his sole name with the fiancee listed as an occupier, how would HDB assess the income for purposes of HDB loan eligibility? Assuming the son earns about $10k a month and the fiancee earns $5-6k a month. Would HDB allow the loan to be given based on the son's income of $10k or will they see the income as being $15-6k even though the fiancee is not going to be an owner of the flat but just an essential occupier?
Thank you!
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