what happens when lease expires?
Upon lease expiration, the land will be returned to the land owner, in most cases Singapore Government, though there are some houses/condos sitting on private land.
The pros of purchasing such property is mostly the attractive pricing. With the same amount of budget, you can get a much bigger land and built, as compared to a smaller Freehold landed property.
Last year, I transacted a semi-detached that has only a balance lease of 31 years. The purchaser was someone who sold his Freehold landed inter-terrace for about 2.5 to 3 times the price. In a way, he bought a bigger property for a fraction of his sale proceeds.
I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.
Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.
PropNex Realty Read More
The positive aspect is that the property is value for money as you will get a large usable and living space with a lower quantum. However, the downside is that old property generally cost more to maintain especially a landed property as there may be issues with the roof etc which will be very costly to repair or replace.
When the lease expires, the land interests will revert back to the owner which is usually the government. Please feel free to contact me if you need further clarifications.
(M) +65 9644 4854
SEAA Salespersons Achievement Platinum Award 2020
Visit my website to know me better: www.nicktan.com.sg
I was featured recently on Council for Estate Agencies (CEA) Newsletter:
I have written a guide on buying Residential Property:
Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)
“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick)
“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)
“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House) Read More
1) The attractiveness of short-lease property is always the price.
2) There is nothing wrong with buying such a property.
3) Seller tends to sell it at an attractive price is because there is almost no buyer for such property.
4) So it is obvious that you will have to sell it cheap in the future to attract buyers.
5) Another reason for lacking buyer is because the property in Singapore always appreciate with time due to supply is always lower than demand.
6) Therefore buyers are using it as a form of long-term investment, live in it, and wait for it to appreciate until they find the price is right to let go or keep it for their children to inherit.
7) So people also worry they outlive the remaining lease of the property, and they will face problems without a roof overhead when they are old and without any income.
8) Property value dropping is definite because of the short lease remains.
9) Mortgage loan is reduced to 60% of the LTV when properties only have 36~40 years left. CPF usage for such properties is also limited to 15%.
10) For properties with 35 years or less on the lease, mortgage loans are usually not possible and CPF funds are not allowed to be used for such purchase.
11) Finally when the lease expires, the government will take over the property without any compensation. The 1st case was the terrace house at Lorong 3 Geylang (lease ends in 2020).
You may read the letter issued by SLA on this:
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636 , or email: email@example.com if more information is needed.
I'll be glad to assist.
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More