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Thread: Can I Buy a New FH Landed, re-Title and sell it as 103yr LH landed?

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    Default Can I Buy a New FH Landed, re-Title and sell it as 103yr LH landed?

    As above, new business idea!!!!!

    How to rip-off present day buyers while maintaining the asset for future descendants

    Anyone knows of legal restrictions for doing the above if i own a landed in-simple clear title without encumbrances and no public pipes below my land,

    can i sell 103LH subsidiary proprietorship (or whatever you call it) with the FH land reverting to me after that period?

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    You sure can, I wrote to URA and this is the response:

    We refer to your query on the subject matter which was directed to us by URA on 26 Nov 2009.
    It is possible for owners of freehold land to, in a private arrangement, carve out a leasehold interest (e.g. 99 year tenure) for development purposes. The State only preside over the tenure of State lands sold via public tender for development purposes. For such State lands sales, the tenure granted is capped at a maximum of 99 years.

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    Reporter is offline F01 N54 Sheer Driving Pleasure
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    Quote Originally Posted by gfoo
    As above, new business idea!!!!!

    How to rip-off present day buyers while maintaining the asset for future descendants

    Anyone knows of legal restrictions for doing the above if i own a landed in-simple clear title without encumbrances and no public pipes below my land,

    can i sell 103LH subsidiary proprietorship (or whatever you call it) with the FH land reverting to me after that period?
    To avoid all the construction trouble, you may want to just buy a bland-new FH landed and re-sell it as a bland-new 99LH landed at a discount to your purchase price. I don't see the need to re-sell it as a 103LH landed.

    I am thinking along this line since my purpose is to pass land - not landed house - to my kids. I think they may prefer to stay in cluster houses or condos with facilities and security.

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    Quote Originally Posted by Reporter
    To avoid all the construction trouble, you may want to just buy a bland-new FH landed and re-sell it as a bland-new 99LH landed at a discount to your purchase price. I don't see the need to re-sell it as a 103LH landed.

    I am thinking along this line since my purpose is to pass land - not landed house - to my kids. I think they may prefer to stay in cluster houses or condos with facilities and security.
    same idea as me mate i'll call my outfit Far West Reorganization

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    if i do this, before expiration prob in 50 years or so i'll sell the FH title to another developer, and leave my LH buyer at the mercy of the new developer - liddat neither myself or the new developer are directly tied to the LH sale anymore - the occupiers will have no one to call

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    Looks like there will be a lot of such re-titled development on sale from now on. Anyway FEO would probably had their legal teams done the necessary checks to ensure that its within the law.
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

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    xebay11 is offline New Launch Project Specialist
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    Quote Originally Posted by condoinvestor
    You sure can, I wrote to URA and this is the response:

    We refer to your query on the subject matter which was directed to us by URA on 26 Nov 2009.
    It is possible for owners of freehold land to, in a private arrangement, carve out a leasehold interest (e.g. 99 year tenure) for development purposes. The State only preside over the tenure of State lands sold via public tender for development purposes. For such State lands sales, the tenure granted is capped at a maximum of 99 years.
    Yes !!!!! Think better buy more landed FH and literally be a LANDLORD.

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    xebay11 is offline New Launch Project Specialist
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    Quote Originally Posted by sleek
    Looks like there will be a lot of such re-titled development on sale from now on. Anyway FEO would probably had their legal teams done the necessary checks to ensure that its within the law.
    Wow like that next time very hard to upgrade landed property liao. Everybody will sell as LH.

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    Quote Originally Posted by xebay11
    Wow like that next time very hard to upgrade landed property liao. Everybody will sell as LH.
    Well, precedent had been set by FEO.
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

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    Quote Originally Posted by sleek
    Well, precedent had been set by FEO.
    i heard the Ng family ..owns many houses in the watten estate itself ..

    over the years .. when they see a good opportunity to squeeze .. like when prop mkt collapse ..they zoom in and buy houses in the estate .. and rent them out

    who knows .. one day the whole Watten estate may belong to them

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    xebay11 is offline New Launch Project Specialist
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    Actually if FH owners can sell the land as LH in future, I would also suggest that in future, developers also be cut out off the equation, why not FH property owners develop the land themselves and sell as LH development? Developers do not add value to the economy at all, except cause inflation.

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    This idea may or may not work depending on how much the price is and the margin loss for leasing 99 years rather than selling FH rights entirely.

    This concept will work if the price of selling as LH is not far from FH, if not the seller will have to sacrfice profit for the ownership fo the land.

    That works for all FH ownership that gotten the land sometime ago with buffer in margins/cost.

    We also havent have a survey in the other way : will you want to buy such a property?

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    I think they are plenty of them who woudl want to buy such property. If they are already people willing to fork out 1200psf for centra for 99 years. Imagine, how many would fork out for landed property.

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    Quote Originally Posted by tobuy
    I think they are plenty of them who woudl want to buy such property. If they are already people willing to fork out 1200psf for centra for 99 years. Imagine, how many would fork out for landed property.
    Quote Originally Posted by xebay11
    From the Shore thread: The present owners benefit from current sale and future gen, if any, benefit from fuure sale. Jia buay leow.
    I think the seller's end will rank "Sell it LH on FH land" higher if the margin is close to an outright sale of the FH.

    On the buyer side (of the LH) how will they be ranking this type of properties amongst others.

    Will it be?

    1. FH
    2. 999 LH
    3. LH on LH land
    4. LH on FH land

    I would think there is somewhat a cycle here.

    If LH on FH model works, its may to propel FH ones upwards and the equation will kind of balance up again. The return of such LH on FH will therefore be thinner as it goes if the FH land is more expensive.

    Just drawing up possible scenarios

    Anyway if this works, better draw up a good will to pass it down generations, perhaps, one fine day, one of your descendents will be shocked by the plots of land that are in their name and just ran out of lease
    Last edited by pearly; 11-12-09 at 13:58.

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    this conversation so reminds me of Second Life

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    Quote Originally Posted by gfoo
    this conversation so reminds me of Second Life
    in what ways?

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