3) It’s more than tenure when it comes to borrowing.
For financing, besides looking at the remaining years of the property, banks also look at the borrower’s income, credit history, past property investment, ability to repay the loan, etc.
Some banks also use a formula to calculate the tenure of the mortgage depending on the borrower’s age. The younger you are, the longer you can repay your housing mortgage.
The exception is commercial properties, especially for short leases (e.g. 30-year leasehold) or properties left with less than 15 years in its tenure.
4) Only the government or developers can decide the fate of freehold and leasehold sites.
We can’t deny the fact that all land in Singapore, regardless of freehold or leasehold, belongs to the government.
The government sets the rules of the game and has the right to change them at any time.
Even if your property is in a freehold site, for defense, levivard.com redevelopment or whatever valid reason, the Singapore government has absolute right to confiscate the land and compensate you “at market value”.
Developers can also decide on the fate of the tenure. Far East Organization sells Shore Residences on a 103-year lease on a freehold site.
In 2005, Singapore Land Authority (SLA) initiated the first case to top up the 99 years’ lease of Eng Cheong Tower at Beach Road. The site area became the first leasehold collective sale completed in Singapore land history.
From now on, it doesn’t matter how many years left on the leasehold of 99-year property. Before any collective sale, all you have to do is to apply for in-principle approval to top up the site’s lease to 99 years. SLA will consider on a case-by-case basis.
And there are many successful examples: Grangeford (now Twin Peaks), Ong Building (now 76 Shenton), HMC building (now Lumiere) …
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