Leasehold

It is essentially a long-term lease in which the lessor leases property to another for a long period of time. Indeed, a leasehold is often used to own a property for a long period of time. For this reason, a leasehold is advantageous for foreigners who wish to have a property for a long period of time. There are three types of long-term leases:

Land law in Singapore is based on English land law. English land law applies along with other English laws and doctrines under the Second Justice Charter of 1826. This provided for the application in Singapore of English doctrines relating to real property. It was, however, applied subject to such modifications on a local scale as were deemed necessary to prevent injustice or oppression. In this way, the English common law rules were adapted to take account of local rules. A real estate lawyer from Themis Partner can provide you with the protections appropriate to the Singapore system.

Freehold: The recipient of a freehold owns the property and the land on which it sits, for an unlimited period of time.

Leasehold: Unlike a freehold as a tenant, you own the property BUT NOT the land on which it is built – which is owned by the “freeholder”, the original owner. You enjoy the rights to your property for a set period of time, which can be years, decades or centuries, depending on the length of your leasehold. If your leasehold expires, ownership of your property automatically passes to the original owner.

The contractual clauses of your agreement must protect you. That’s why our lease agreement offers you full legal protection in the event of default by the other party or an unforeseen event:

In conclusion, if you want to rent long term in Singapore, drawing up an agreement is essential and mandatory for legal protection in case of default of the parties.

The term of the leasehold must be certain. The agreement must clearly state the length of the lease term and the effective date.
Leases of more than 7 years (including any renewal options) must be in writing in the form of a deed and in English (as set out in the Conveyancing and Law of Property Act) and must also be registered with the Registry of Deeds.
Leases of 7 years or less (including any renewal options) may be written or oral. Such a leasehold should preferably be in writing, although an oral agreement for a lease coupled with partial performance by the tenant will also make the lease enforceable.
The landlord has a right of reversion. At the end of the lease, possession of the land reverts to the landlord.

Simply defined, the house reverts back to the original owner once the lease expires, whether it is the HDB, SLA or other owners.

Make sure you have a written lease agreement to address late rent payments. Our lease agreement includes a clear and consistent rent collection policy. Rent collection clauses should specify the amount of rent due when it is due, including late fees and other penalties. If you accept a late payment once without charging a late fee, your tenants will have no reason to pay on time. In the event of non-payment of rent, the landlord may terminate the agreement within a reasonable period of time after notice of default has been given.

If you need legal assistance, contact Themis Partner, and we will put you in touch with a competent lawyer who will answer your questions.