Leasehold versus freehold
https://www.theedgeproperty.com.sg/content/leasehold-versus-freehold-argument-will-go-until-cows-come-home Many have always debated over the issue of whether to buy a leasehold or freehold property. (In this article, we shall treat 999-year leaseholds as if they are freehold in nature.) In their quest to find out more about these two tenures of properties, one thing they will encounter is the question of what premium a freehold property commands over one that has a limited legal lifespan. However, one thing that many will notice is that wherever they turn to for an answer, there doesn’t seem to be a definitive one. Even professionals like valuers would condition their reply with an approximate percentage. Often a 10% premium is used. Mathematically, the difference in value between 60 to 99-year leasehold and a freehold land is negligible. It is only when the remaining lease gets down to 78 years that the difference amounts to 10%. The discount for a leasehold of varying tenure...
