Leasehold can be 99 years or 999 years. 999 year leasehold is practically same as freehold due to the longer lease, can be long enough to house for many generations with ease.
99 year leasehold property reverts back to the state upon its lease expired. For 99 year leasehold property owners, they can choose to top up the lease back to 99 years on their land with SLA
directly, with the payment of a land premium or sell their property to a third party developer during a collective or enbloc sale.
The SLA chief valuer will assessed the premium on a case by case basis, taking into account factors the government intention with the land and whether the proposed use would optimise the
land’s use. However, the premium charged by the SLA is too expensive for individuals so only companies or other privately held entities can afford to take it.
For collective or enbloc sale, it is the option favoured by most individual homeowners as it pushes the hefty obligation of the land premium payment on to the private developers or companies
who can afford to do it. The downside is that the owners cannot be entitled to stay in their property as the rights to the lease transfer to the private developers instead. The owners do get for
compensation for their property.
Leasehold tend to give better rental yield as the price is more affordable than freehold. And tenant are not affected by whether it is freehold or leasehold. So older properties tend to purchase
at lower capital and give a higher yields.For properties build on freehold land, the land belongs to the leasehold owner indefinitely so there is not a need to worry about lease expiring. Unless government acquisition for reclaim of the
land for infrastructure or security purpose. Freehold fetches a better prices during an enbloc sale or collective sale as the owner are giving up more in term of indefinite period.
Freehold rarely can be found near MRT due to the scarcity of the lands and the units for a freehold development are smaller in sizes. It is located and commonly found near private estate cluster. Price quantum for a freehold new launch condo or any freehold condominium are naturally a bigger price tag due to the indefinite life time assets.
If your holding power is very strong and willing to sustain it in the long run. It could benefits your future next generation. When a en bloc sales took place, the return is high and tremendous.Visit New Launch Sg Property Homepage for other new launch condo!