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Type of Application & Scenario |
Terms & Condition |
Fee Payable
(Inclusive of GST) |
| ASSIGNMENT/TRANSFER |
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Click here for Standard
Terms and Conditions of application |
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When there is :-
- Assignment/transfer of Lease to an industrialist
or a REIT company (under the Sales & Leaseback
Scheme)
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Eligibility
- Lessee can apply for assignment if there are no
breaches of the existing lease condition.
Rent & Benefits
- Land rental is increased by a percentage of 80%
on the difference between the prevailing posted land
rate and the existing contractual land rental, subject
to the cap of the prevailing posted land rent.
Performance Required
- New Lessee to obtain e.g. NEA's/URA clearance for
his proposed use/ trade.
- New Lessee will bear for all legal costs, stamp
fees and other expenses incurred by reason of the
issue of Supplemental Deed/ Variation of Lease, etc.
- Parties / solicitors to forward a stamped copy of
Transfer / Assignment instruments to HDB
Penalty on Illegal Assignment
- The existing land rental would be revised and backdated
to date infringement is detected.
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Lease on Rental Scheme:
- $500 (GST exclusive) - Consent for assignment/transfer of Lease
- $500 (GST exclusive) - Consent for a change of classification of
industry use as confirmed by URA
Lease on Premium Scheme:
- 10% of the difference between the sales price and
the last purchase price + GST
- $500 (GST exclusive) - Consent for a change of classification of
industry use as confirmed by URA
- $450 (GST inclusive) to SLA for consent to assignment
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| SUBLETTING |
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When :
- Lessee rents a portion of his building space to
another party - including one that he wholly owns
or is related to.
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Space Allowed
- Up to 100% of the gross floor area from Lease Commencement
Date / Date of Temporary Occupation Permit (TOP) /
Date of Assignment/Transfer, whichever is later.
Floor Usage by Lessee/Subtenant
- Under the URA development guidelines, at least 60%
of the total gross floor area must be set aside for
industrial activities, inclusive of ancillary store/warehouse.
A maximum of 40% can be used for storage, ancillary
office or other ancillary purposes.
- No limit for joint-ventures companies where Lessee
has at least 51% stake.
- Occupation by Lessee's subcontractors not treated
as subletting.
Tenure
- Maximum 3 years, renewable.
Use of Sublet Area
- Compatible uses are allowed except Office / Retail
/ Storage/ Dormitory Housing
- Lessee to ensure that subtenant obtains the relevant
authorities¯ clearance e.g. NEA/AVA/HAS/MOM for
his subtenant's trade and compliance prior to operation
- Separate Factory Licence issued by MOM may be required
Sublet Consent Fee
- Fee Computation:
Lease on Rental Scheme:
[80%(Prevailing Posted land rental rate - Existing
Contractual Land Rental Rate) x (Land Area/ Gross
Floor Area)i
x Sublet Area x Share of Subtenant not owned by
Lessee ii
] ) / 12 months, subject to a minimum of $500 p.a. (GST exclusive).
Lease on Premium Scheme:
3% of Sublet Rent pa x Shares not owned by Lessee
) / 12 months, subject to a minimum of $500 p.a. (GST exclusive).
- Does not apply to subletting in land leases
where Gross Plot Ratio is < 1.0, eg. bus depots,
precast yards, prototype factories.
- Concession is granted if there is a shareholding
relationship between the Lessees and the Subtenants.
Shares owned by common individual shareholders
or directors will not be taken into consideration.
- 50% discount on sublet consent fee, subject to:-
- A maximum $3,000 p.a. (GST exclusive) to 1st time application.
- Complete application i.e. NEA/Competent Authorities'
clearances received before commencement of subletting
- Sublet consent fee paid to HDB within 14 days
from subletting commencement date.
- Sublet consent fee after discount is subject
to a minimum of $500 p.a. (GST exclusive).
- A one-time administrative fee, fixed at $500 p.a. (GST exclusive) is imposed for subletting to wholly-owned
or parent company or subsidiaries with percentage
of shareholding relationship of 51% or more. Renewal
of subletting is not required. Lessee to keep HDB
informed of any change of share structure.
Secondary Dormitory Cases
- [3% (Sublet Rent per annum) / 12 months]
Penalty
- Interest at 8.5% pa payable for late renewals /
late payment of sublet consent fee
- For unauthorised subletting:
- An additional fee of 50% of the annual sublet
consent fee shall be imposed for the period from
the commencement date of unauthorised subletting
to date of receipt of the application to regularise.
The minimum amount of additional fee and interest
payment at 8.5% pa is $5,000/-.
- For under-declaration of sublet rent:
- Payment of the difference of the sublet consent
fee based on the actual sublet rental and declared
rent and an interest at 8.5% pa will be charged.
A penalty fee of 50% of the sublet consent fee
based on the actual rent from the date of commencement
of subletting to the date of detection is also
payable. The minimum amount of additional fee
and interest payment is $5,000/-.
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Sublet Consent Fee subject to minimum
$500 p.a. (GST exclusive)
For usage of Lessee's premises as registered
office/correspondence address, a one time non-refundable
administrative fee of $200 (GST exclusive) will be
imposed. Fee is charged on per company basis.
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| TRANSFER OF SHARES |
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When there is :-
- An internal corporate re-organisation or reconstruction
exercise, within related companies
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Rent & Benefits
- Rent shall not be adjusted
- There is no control on retention of minimum shareholding
Conditions
- No change to the existing approved trade as spelt
out in the Lease Agreement
- No change to the company existing legal entity,
ACRA Registration no.
- It does not tantamount to an assignment or an outright
transfer of the Lease to another party
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$500 (GST exclusive)
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| CHANGE OF MODE OF BUSINESS |
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When there is :-
- Conversion of sole-proprietorship or partnership
to a legal entity e.g. Private Limited Co or Limited
Liability Partnership (where the original business
retain minimum share of 51%)
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Rent & Benefits
- Rent shall not be adjusted
Performance Required
- Execution of a Supplemental Agreement and payment
of stamp fee
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$500 (GST exclusive)
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| CHANGE OF COMPANY NAME |
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When there is :-
- Change of Name without change in Company's Registration
No and any other changes
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Rent & Benefits
- Rent shall not be adjusted
Performance Required
- Lessee to forward HDB a copy of the Certificate
of Change of Name of Company
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Nil
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| CHANGE / INCLUSION OF TRADE/ USE |
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When :-
- Lessee wishes to carry out a new or additional Trade,
without any other changes
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Rent & Benefits
- Rent shall not be adjusted
Performance Required
- Lessee need to obtain clearance and comply with
the regulations of competent authorities for new /
additional trade/ use
- Execution of a Supplemental Agreement and payment
of stamp fee.
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$500 (GST exclusive) - Consent for a change of classification
of industry use as confirmed by URA
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| MORTGAGE OF PROPERTY |
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When :-
- Lessee secures their Lease for loans / facilities
with Banks / Finance Companies / Insurance Companies
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Rent & Benefits
- Rent shall not be adjusted
- Mortgage / Charge Instrument do not have to be endorsed
by HDB
Performance Required
- There is no infringement to the Lease Agreement
- HDB's prior written consent is no longer required
for the creation / transfer of a Mortgage / Charge
subject to:
(i) Submission of a duly completed Notice of Mortgage
/ Charge in the form set out in Annex A
(ii) Submit to HDB the Notice at least 7 working days
prior to the creation or transfer of any mortgage
/ charge
(iii) Forward to HDB a copy of the Mortgage / Charge
letter of offer together with the submission of the
Notice
(iv) HDB's terms of consent as set out in Annex B
(v) The Mortgagor / Chargor may authorise its solicitors
to duly complete and submit the Notice on its behalf
(vi) Notify HDB if the Mortgage / Charge has been
discharged or is not proceeded with
(vii) Ensure that the Mortgagor's / Chargor's solicitors
gives the required certificate in the Mortgage / Charge
documents (As shown in Annex B)
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