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View Full Version : Will bank give loans to houses with less than 60 years remaining lease?


may2012
22-06-12, 20:14
As per title? thanks.
House
22-06-12, 23:06
why not? if all the major bank refuse to loan you, look for hong leong finance, they will loan ANYBODY for ANYTHING(including geylang houses)
newbie11
23-06-12, 19:51
Most would not give.
may2012
23-06-12, 21:54
In that case capital apreciation will be limited. I'm thinking of Neptune Court.
hyenergix
23-06-12, 22:03
Most would not give.

Please tell that to those buying 99LH in Singapore.
House
23-06-12, 22:29
In that case capital apreciation will be limited. I'm thinking of Neptune Court.

it's kinda risky for neptune court. for the $1m+ i rather go casino....more chances of capital appreciation.:D :D :D
fclim
23-06-12, 23:27
Please tell that to those buying 99LH in Singapore.

Let me see.... That would be 90% of home owners here.
may2012
24-06-12, 01:00
Please tell that to those buying 99LH in Singapore.

It shd be ok if house is less than 20 years or best less than 10 years old.
hyenergix
24-06-12, 07:37
It shd be ok if house is less than 20 years or best less than 10 years old.

99LH condos are a recent phenomena when Singapore booms from 1980s onwards. Many are still less than 30 years old. Things may get tricky in another 10-20 years when these properties start to age. The most likely scenario is government will amend the law and ask the owners to top up their lease, if the owners vote for it.
hyenergix
24-06-12, 07:40
Let me see.... That would be 90% of home owners here.

HDB is virtually FH. Prob only around 80% of home owners who stay in PC/landed. Assuming only 20% of total home owners staying in PC/landed, it means around 16% only. Small percentage but they could be a very vocal group.
newbie11
24-06-12, 08:34
So banks should rethink their policy in 5-10 years time when 1st batch become 40yo.. I wouldn't worry bcos banks won't let 90% down
fclim
24-06-12, 08:40
HDB is virtually FH. Prob only around 80% of home owners who stay in PC/landed. Assuming only 20% of total home owners staying in PC/landed, it means around 16% only. Small percentage but they could be a very vocal group.

So banks will still lend if HDB flat has 30 years lease remaining?
DC33_2008
24-06-12, 17:34
When land and construction cost in Singapore is too high, they will have to reduce the lease of hdb flats from 99 years to maybe 70 years. Just like what happen to industrial land recently.
hyenergix
24-06-12, 18:14
So banks will still lend if HDB flat has 30 years lease remaining?

That is a hypothetical question. I suppose HDB itself can still lend but most likely there are no such flats around due to SERS or alternative schemes.
newbie11
24-06-12, 23:54
That is a hypothetical question. I suppose HDB itself can still lend but most likely there are no such flats around due to SERS or alternative schemes.
True.. Think first batch of Pte 40yo will be the Pre war flats at tiong bahru. Selling for 1k psf. Let's see how they sell and how buyers borrow
fclim
25-06-12, 00:13
That is a hypothetical question. I suppose HDB itself can still lend but most likely there are no such flats around due to SERS or alternative schemes.

Maybe I should say, Will banks lend if HDB flat has 60 years lease left?

If yes, then why not PC?
If no, then HDB is not virtual FH.

HDB will not lend if you are above a certain income level. You need to borrow from banks.
hyenergix
25-06-12, 00:21
Why are you so worried? For others or for yourself? If for yourself, then avoid 99LH properties. HDB is still safe because you can write to MP for your case if there is a bit of problem with the loan. I would rather avoid 99LH than facing problems selling in future.
fclim
25-06-12, 01:16
Why are you so worried? For others or for yourself? If for yourself, then avoid 99LH properties. HDB is still safe because you can write to MP for your case if there is a bit of problem with the loan. I would rather avoid 99LH than facing problems selling in future.

I am not worried. Just correcting your simplistic, naive and sweeping statements.
hyenergix
25-06-12, 01:27
I am not worried. Just correcting your simplistic, naive and sweeping statements.

Maybe ;) Better to let the banks decide for themselves whether to lend or not under certain conditions. I'm not the bank and I'm not the one risking my capital. FH and 99LH debate have been going on for a long time. Just stick to the one you are more comfortable with.
fclim
25-06-12, 08:37
Maybe ;) Better to let the banks decide for themselves whether to lend or not under certain conditions. I'm not the bank and I'm not the one risking my capital. FH and 99LH debate have been going on for a long time. Just stick to the one you are more comfortable with.

:D :)

Actually, I kinda feel it is risky to buy any property now, FH or LH. With a rapidly ageing population and declining birth rate, who you gonna sell your property to in the future? Huge immigration influx is politically untenable. Can we expect prices to double in 20 years time? Just my opinion only.

2012:

:rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: =:OldFart:

2030:

:rocking-the-decks: :rocking-the-decks: =:OldFart:
hyenergix
25-06-12, 10:39
:D :)

Actually, I kinda feel it is risky to buy any property now, FH or LH. With a rapidly ageing population and declining birth rate, who you gonna sell your property to in the future? Huge immigration influx is politically untenable. Can we expect prices to double in 20 years time? Just my opinion only.

2012:

:rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: :rocking-the-decks: =:OldFart:

2030:

:rocking-the-decks: :rocking-the-decks: =:OldFart:

Yup. Bull run is over.