Estate in land – Singapore property for rent/ sale
Singapore property for rent/ sale – Estate in land refers to the duration of the owner’s interest in land, e.g. freehold or leasehold. The two common forms of an estate are as follows:
1. Freehold estate
The two types of freehold estates are as follows:
- Estate in Fee Simple is a freehold estate and the owner can own it forever. It is also referred to as Grant in Fee Simple (GFS), Grant (GT) or Indenture (IND). It is the best form of freehold in that ownership is absolute without conditions. Suites@Newton and East Coast Residences are examples of Estate in Fee Simple properties.
- Estate in Perpetuity is also a freehold estate and the owner can own it forever. It is also referred to as Statutory Land Grant (SLG). It is however subject to the terms under the State Lands Act. The terms include the rights of the State to have free access to land, take mineral oil and duty to maintain boundary marks. Oxley Tower in Robinson Road and the Peak@Balmeg in West Coast are examples of Estate in Perpetuity properties.
2. Leasehold estate
- A leasehold estate has a definite duration and expires after some specified period. Examples of leasehold periods are 9,999 years, 999 years, 99 years, 60 years, 30 years, etc. At the end of the lease period, the land will revert to the original owner who granted the leasehold unless it is extended by the original owner. This is referred to as reversionary interest. If the land belongs to the State, towards the end of the lease, the lessees can apply for a top-up of the lease, subject to approval and payment of a fee known as Differential Premium. Examples of 99-year leasehold estates are HDB flats and most residential lands put up for sale by URA. JTC lands are usually of shorter lease such as 60 or 30 years. Sky Habitat in Bishan and Trevista in Toa Payoh are examples of 99-year leasehold properties.
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