Is your flat nearing the expiry of a 99-year leasehold? You might be wondering what happens when 99 years runs out.
National Development Minister Lawrence Wong reminds homeowners that as the leases run down, especially towards the tail-end, the flat prices will come down correspondingly. Once flats reach 99 years, they will have zero value and owners will have to vacate.
Homebuyers are cautioned by Mr. Wong not to assume that all old Housing Development Board (HDB) flats will be automatically eligible for the Selective En bloc Redevelopment Scheme (SERS). For most HDB flats, their leases will eventually run out and the flats returned to HDB, which in turn surrenders the land the flats are on to the State.
Presently, many seniors who want to downgrade to Built-To-Order studio apartments for the elderly are in a fix as they are unable to sell their old flats. They stand to lose their deposits on their new flat if they cannot sell their old flat. Most of them were hoping to downgrade and live on the profits from selling their flats but have become disillusioned.
If you know of any elderly around you who may be in such situations, we are able to help in the following areas:
- Assist in their financial calculations
- Assist in their affordability calculations
- Explore Government schemes that may be suitable for them
Our real estate professionals will be doing this entirely free of charge.
You can reach us at 6886 9009 or [email protected].
Source: Lim (2018), The Straits Times (2017)
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