Hi all, as per the topic title, I'd appreciate if others more knowledgeable in the industry can share your thoughts on this.

I'm in the process of considering to purchase a unit of LH condominium for own stay, that's slated for VP early 2021.
However, the LH tenure is ending at mid 2101, giving me approximately 80.5 years of LH at the point of VP.

While I understand and can probably accept LH tenure ~90-95 years upon VP, I'm a bit uncomfortable about the 80.5 years of LH.

I'd like to ask for your opinions on this, would you proceed with such a development?
The reasons why the unit is still in consideration is because, amongst the area that I'm looking for, there is minimal choices... my logical mind tells me that it's not wise, but i feel a bit forced to purchase it, since there's limited choices that met my criteria. (Door direction, new unit, VP in early 2021, central to location of work for both me and partner, not high density...) everything else is ok, accept just this short leasehold problem, it's a buy to me, if the LH is 90++ years.

1) What's the general acceptable leasehold durations for new projects upon VP?
2) In cases where the leasehold is low, I saw some developers do extend the LH upon VP, is it the norm for the industry to do so? (But the dev agent confirmed they will not renew the tenure for this project)
3) This question is relevant now, as I guess a lot of developers who purchased additional LH lands back in the BBB period is having trouble launching their products, and kept delaying it... so I believe a lot of other launches in this period may have the same issue too.


Thank you~

This post has been edited by eltaria: Sep 28 2020, 08:56 AM

Lol Vince, you know which one I'm talking about

Renewal of a lease cost money and a renewal will oredi be included in the selliing price if the developer proceed to extend.

Depending on the developer and project, a sought after will always have demand eventhough a shorter lease tenure and price matters.

Glossary:
VP = vacant possession. Usually refers to 2nd hand home. For new house, ts meant the house handover from developer to owner.
LH tenure = "leasehold tenure". Usually shorten to just "lease".

'Handover' is the process of passing keys to the next person....subsale included.

'Vacant possession' is a state where the property is NOT being occupied, new and subsale included

This post has been edited by mini orchard: Sep 28 2020, 10:23 AM

Expressionz still fairly new property.
VP with leasehold until 2079 only.

When u want to sell in subsale market, how many years lease left will be a nightmare

I am just trying to be a purist when in comes to the terms used. This helps to reduce confusion for the newbie buyers.

Handover
This term should be avoid. For my house purchase, i remembered, one day, I got call from the developer to collect the keys to the house. Then, i drove to the developer's office and the keys in nice key pouch with a brochure. The office clerk also gave me a form to fill up for house defects. Come to think of it, calling it a handover process is too much.

I recommend using the term "keys collection" event instead since regardless of whether the buyer collects the keys, the house already belong to the buyer at this point.


Vacant Possession
This term should be avoided for new house. Vacant possession is a very important requirement when buying 2nd-hand house. Lawyer put it into the contract so that if house is not delivered in vacant possession state, then the contract is not fulfilled.

However, for new house, i believe that the house belongs to us once the Certification of Completion And Compliance* (CCC) is issued. At this point, even if the developer ran away and didn't give you the keys, the house is still yours. The contract is fulfilled (albeit not satisfactory).

Just to explain further, if we buy 2nd-house, most of the time, there is already a legal occupier (tenant) in the house. By stating that the buyer wants "vacant possession" of a house, that means the house should be passed to the buyer without any legal occupier.

"Vacant possession" does not mean the house is "empty". Empty does not have an inherent legal meaning. "Vacant possession" has legal meaning.

Let's explore a case where:
1) House owner rents house to a tenant.
2) House owner (seller) sold the house and told the tenant to move out with 2 months notice period.
3) After three month, bank loan were approved and all documents settled but the tenant did not move out. At this point, the law states that the tenant has created "tenancy at sufferance" and is still a legal occupier of the house.
4) Once day, the tenant goes out of the house. Then the seller quicker trespass into the house, cleared up the tenant's possession and ask the buyer to come the house and take the keys.

Does this mean a vacant possession has been delivered to buyer? No, because the tenant that refused to move is still the legal occupier of the house and the buyer is the trespasser.

For cases of new house, at no point is there any question on to who is the legal occupier. If even Bangla workers where to sleep at the house throughout the construction and renovation period, these workers are never legal occupiers of the house.

Sample of a developer's SnP Agreement ...

This post has been edited by mini orchard: Oct 8 2020, 02:29 PM


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I will definitely propose you to be our next Housing Minister.