Is a 999 year lease a freehold?

Put simply, acquiring a 999 year lease enables a flat owner to have a title that is 'as good as freehold' and therefore more marketable than for example a 85 year lease, whilst retaining the existing freehold/leasehold structure.

What is the difference between 999 years and freehold?

The common understanding is that freehold properties can be held indefinitely by the buyer, while 99-year leasehold properties will revert back to the state after the tenure ends. The 999-year leasehold properties also technically revert back to the state after the tenure ends.

Are Hong Kong Properties freehold?

The People's Republic of China owns all the land in Hong Kong, except the land on which St John's Cathedral stands. The land owned by this church is freehold. Hence, no freehold land exists in Hong Kong – all plots are leasehold.

Is freehold or 99-year better?

From the table above, we can see that a 99-year lease property at its peak is worth 96% of a freehold's value. This then drops to 80% at its 60-year mark, 60% at its 30-year mark and so forth. It is important to note that the value is not depreciating at an even rate as seen from the curve above.

What is the longest lease term?

A 99-year lease is generally the longest possible lease term for a piece of real estate property. It used to be the longest possible under common law.

Do You Know the Difference Between a Leasehold 999-Year versus a Freehold Property

Can a 99 year lease be broken?

Question 1- Yes, you have to. Else, there is nothing to prove that you are the new owner of the property.

What is a good leasehold length?

This is usually 99 or 125 years. The person who owns the lease on the property is called the leaseholder. Unless it has been extended, at the end of the lease, the right to live in the property reverts to the freeholder.

What is a freehold lease?

The freeholder of a property owns it outright, including the land it's built on. If you buy a freehold, you're responsible for maintaining your property and land, so you'll need to budget for these costs. Most houses are freehold but some might be leasehold – usually through shared-ownership schemes.

Should I buy a house with a 99-year lease?

Here is how the remaining term on the lease should impact on your purchase decision: 100+ Years remaining: If there is more than 100 years remaining on your lease, go ahead with the purchase; you don't need to do anything at this stage. 95-99 years remaining: You're OK to buy.

Is it better to buy freehold or leasehold?

Cheaper properties: Leasehold properties tend to be cheaper than freehold properties. However, this is due to the risks involved. Less responsibility: The freeholder usually manages maintenance for the building and communal areas and arranges buildings insurance.

Who owns 999-year lease?

All GLA grant-funded shared ownership homes to have 999-year leases. All shared ownership homes built in the capital as part of the new Affordable Homes Programme will be sold with a 999-year lease as standard, the Greater London Authority has said.

Is China property freehold or leasehold?

Some nations, like China and Vietnam, have leasehold title systems rooted in their government's communist origins. Others, like Indonesia, let their citizens own freehold real estate while banning foreign nationals from permanent ownership of any type of land or structure.

How long are land leases in Hong Kong?

In Hong Kong, virtually all land is leasehold, except a small plot of land granted to St John's Cathedral in Central. Since 1843, it had been an established practice for the Government to dispose of land by granting leases to users with terms mostly either 75 years or 99 years, and in limited cases, 999 years.

How do I change my leasehold property to freehold?

Can I buy the freehold of my leasehold flat?

Buying the freehold to your flat isn't something you can do on your own though, to qualify you have to get your neighbours involved too. By law, at least half of the leaseholders in the building must come together to purchase the freehold.

Can a freeholder refuse to extend a lease?

If you decide to try to negotiate a lease extension, there are no rules and your landlord could refuse to extend your lease, or set whatever terms they like.

How much does it cost to convert leasehold to freehold?

So how much does it cost? There is no set cost to buying a freehold; there are a number of factors that come into play, the main one being the length of the lease. If you have a short lease the cost will be higher. Additional factors will be the value of the property and rent.

Can I extend my lease to 999 years?

It's usually then easy and cheap to extend the lease of your property at the same time, and you can normally do so up to 999 years.

Why would anyone buy a leasehold property?

The value of a leasehold property is typically lower than it would be if the property were sold in a regular freehold arrangement. This means that if the terms of the lease allow it, the buyer can choose to purchase the entirety of the property (land included) at a lower per annum fee than the rate of a mortgage.

Are leases freehold or Flathold?

Freehold is typically for houses and leasehold is usually for flats. Freehold means that you own the land and the building that sits on it. Leasehold means that you own a lease, which is a contract that gives you the right to live in the property for a set number of years (for example, 99, 125 or 999 years).

How do I know if a property is freehold?

Alernatively, you can go to the Land Registry website and search for an entry for your property. Most property is registered and for a small fee you should be able to obtain a copy of your title who will confirm whether the property is freehold or leasehold.

How long is a freehold?

A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership. Lease lengths vary and most common are 99, 125 (in the case of ex local authority) 500 and 999.

Why is a 99 year lease not 100?

The development authority of a particular area provides land development rights to developers and sells properties for a lease of 99 years. This means that anyone who purchases a residential or commercial property will own it only for a period of 99 years, after which the ownership is given back to the landowner.

Can a freeholder force a leaseholder to sell?

If you wish to exercise this right or feel that you should have been able to, you should get legal advice. If the freeholder does sell without letting you know, you can force the new freeholder to sell to you, at the price paid for the property.

Can I get a mortgage on a leasehold property?

Can I get a mortgage on a leasehold property? Whether or not you can get a mortgage on a leasehold property depends on how long – or short – the lease is. The shorter the lease, the more difficult it is to get a mortgage. Most mortgage lenders won't lend on properties with a lease under 70 years.