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The fact that the terms of the lease has come to an end does not mean that you have to leave the property. Unless you or your landlord takes specific steps to end the agreement under the lease, it will simply continue on exactly the same terms. You do not need do anything unless you receive a notice from your landlord.

The life of a building is normally taken as fifty years while financing a bank loan by bankers. So property value will depreciate by 2% per year. Thus there is no harm in purchasing a property which is 20 years old. One can always obtain a valuation report from a chartered engineer.

However, another clause states that once a property has been occupied for 100 years, it immediately becomes a freehold asset. Development Authorities are better able to manage development by keeping property leasehold.

After the expiry of 99 years, the ownership will be given back to the original landowner. What happens when a land lease expires? If the tenure of leasehold properties end, it can be extended beyond 99 years. The buyers are required to pay a ground rent to the original landowner.

After the first term expires, these leasehold properties may be renewed by paying specific fees. Technically, by paying the authorities a fee, the lease term might be extended to 999 years. However, another clause states that once a property has been occupied for 100 years, it immediately becomes a freehold asset.

A lease is a contract between a tenant and landlord that gives a tenant the right to live in a property for a fixed period of time, typically covering a 6- or 12-month rental period.

What it is. Your 90 year lease serves as a second asset as it provides a long term right and interest in the land and as the value of the land increases so does the value of the lease.