Differential premium for extension of lease – HDB flat for sale in Singapore
- Amount payable to extend lease term on state land.
- E.g. Existing 99 leasehold land has a remaining lease term of 60 years. Developer wishes to develop the project with a new lease of 99 years.Developer is to pay “before” extension and “after” extension value as differential premium.
- E.g. Before extension, value of the land is $10M. After extension, value of land is $15M. The differential premium is therefore $5M.
- The “before” & “after” value is computed based on the DC Rate Table.
- The leasehold value is also adjusted using the Leasehold Table.
- DP is the difference in value between the use and/or intensity stated in the State title and the approved use and/or intensity in the provisional planning permission.
- The material date of determination of DP is pegged to the date of Provisional Permission (PP) or the date of the second and subsequent PP extensions.
Please click here to search for HDB flat for sale in Singapore
