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Hi, I have a very simple que to ask. For leasehold property (e.g 99 years), does it mean that when the 99 years is up, the property you have bought (e.g. 300K) is gone completely? You or your children get nothing? Or is it going to work like COE...when the 10 years is up, you need to buy another COE in order to continue using the car (assuming that you don't want to change a new one)?

 

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here's my take (i may be wrong).....technically yes, after the 99yrs lease is up, the land will have to be returned to the landlord aka govt. however, base on current trend, usually the property will bought over by a developer via en-bloc sale, the developer will then apply to the landlord to renew the lease (or top-up) back to 99yrs for a fee.

 

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Whether the govt agrees to top up the lease, depends on the planning intention for the area. For example.. Amberville, govt agree to top up the lease.. cos the old and new plan is same.

Keppel golf club.. want to top up lease.. but govt keep mum.. get the hint?

 

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Whether the govt agrees to top up the lease, depends on the planning intention for the area. For example.. Amberville, govt agree to top up the lease.. cos the old and new plan is same.

Keppel golf club.. want to top up lease.. but govt keep mum.. get the hint?

Assuming, no developer wants them.

So current managment committee renew the lease at the current market price ?

Also, technically, can building exceed the lifespan of 99 years ?

 

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Assuming, no developer wants them.

So current managment committee renew the lease at the current market price ?

Also, technically, can building exceed the lifespan of 99 years ?

Anyone with the owner's permission can apply to SLA to top up the lease.

But it's not as easy as it sounds.

Firstly.. let's say SLA agree say $10Mil to top up lease.

Where is this $10Mil going to come from? No bank will lend cos there is no security for such a loan.

and if want to top up the title, means.. all owners need to redeem the titles from their respective housing loan bank before can give SLA to reflect topped up status.

This will be a multi million dollar CASH exercise.

Concrete structure can last forever, the issue is the M&E like plumbing/electrical cables/lifts, as well as the waterproofing.

 

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I stand corrected, but I don't believe there is any precedent of residential properties running out of the lease in S'pore. The enbloc examples are lease top-ups for redevelopment purposes, way before the leases run out. This being so, the answers to the question are hypothetical at best.

When the residential leases run out, the ownership of the property reverts to the state, so my guess is that the govt's decision and action will be driven by the maximisation of the value of land in accordance to the land use masterplan. If a mixed landed area is sited within low or high rise residential area, it will be redeveloped. If land use is the same and there are no takers for re-development, short lease extensions are possible.

There is a cluster of terrace houses at Geylang Bahru that sits on 60-years leasehold land with the leases running out in 2020. It will be interesting to see what happens. My guess is that it will be redeveloped for sure.

 

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Hi, I have a very simple que to ask. For leasehold property (e.g 99 years), does it mean that when the 99 years is up, the property you have bought (e.g. 300K) is gone completely? You or your children get nothing? Or is it going to work like COE...when the 10 years is up, you need to buy another COE in order to continue using the car (assuming that you don't want to change a new one)?

On a different take, is it true that for a fully paid freehold property, once you take a mortage loan from the bank the land reverts to a leasehold type till you paid up the loan?

 

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On a different take, is it true that for a fully paid freehold property, once you take a mortage loan from the bank the land reverts to a leasehold type till you paid up the loan?

I've not heard of this before....can anyone here clarify? thanks!

 

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On a different take, is it true that for a fully paid freehold property, once you take a mortage loan from the bank the land reverts to a leasehold type till you paid up the loan?

Why would anyone want to obtain a mortgage loan for a property that's fully paid up? In any case, I don't think the situation happens as you have described. A more likely situation is that should you obtain a mortgage loan (for whatever reason) for your fully paid up freehold property, the property technically belongs to the bank from which you got your loan. It will stay with the bank till you pay up your loan. You default on the loan, the bank can auction off your property to recover their money.

 

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On a different take, is it true that for a fully paid freehold property, once you take a mortage loan from the bank the land reverts to a leasehold type till you paid up the loan?

Where did you get that idea from? The general idea for properties that are mortgaged to the bank, the financial instituition will hold the deed to the said property. What that also means is the financial instituition will have a first charge (proceeds on selling the property willl be used to redeem the mortgage loan first) on the property.

A mortgage loan uses the property as collateral to guarantee repayment of the loan. The borrower gives the financial instituition a lien against the property, and the financial instituition can foreclose on the property if the borrower does not repay the loan per the agreed terms.

Do note that if you purchase a property for 500,000 and after 20years it's worth 1.3m and you have paid full for the property, there's money there that is not "working" for you. Hence there are people who might want to cash out the equity of the property for one reason on another

 

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