Thursday, July 10, 2008

99 Years Lease

Does this question ever cross your mind before?

"What is the legal position of HDB owners in Singapore after the lease of 99 has run out?"

The fact is that real property in Singapore is classified as leasehold or freehold which applies to both landed and non-landed properties. Freehold property is held by the owner in perpetuity (unless another MRT line is extended to your neighborhood and your property has to make way for it). Leasehold properties typically run for 99 years but may also extend for up to 999 years.

Let's assume that either 99 years or 999 years period is running out tomorrow. What is going happen to the owners? Are they supposed to quietly pack their things and move out quickly? Will the government of Singapore enforce its rights and ask the owners to move out immediately? Is there any binding legal case in a Singapore court which is related to this enforcement before?

Although it can be said that Singapore Government retains the right to take over the property on the expiry of the lease period, chances are that most properties are likely to be extended or renewed so that Singaporeans can continue to live there. In fact there is no legal case that is tested on this topic yet and thus nobody is certain about this whole situation. Since Singapore gained Independence about half a century ago, this issue is still in the grey area. Let's watch the story unfold over the times.

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