LEASE MANAGEMENT

A payment, known as differential premium (DP), will be charged for the lifting of the title restriction. The DP serves to account for the difference in value between the use and/or intensity stated in the State title and that approved in the planning permission.

DP is generally computed based on the Development Charge (DC) Table of Rates. However, in cases where the State Title contains special restrictions, the DP may be determined using other methods and the resultant amount may be higher than the amount derived using the DC Table of Rates. The material date for the determination of DP is pegged to the date of the Provisional Permission (PP) or the start date of any second or subsequent PP extensions. For leasehold lands, the DP will be adjusted to reflect the remaining tenure of the land using the Leasehold Table.

Where the approved use does not fit into any of the Use Groups in the DC Table of Rates, the DP payable will be determined by the Chief Valuer.

For more information and examples of how DP is calculated, please click and here and here.

Landowners/developers who are not satisfied with the differential premium (DP) payable based on the Development Charge (DC) Table of Rates may appeal to SLA in writing. SLA will then consult Chief Valuer (CV) for a spot valuation.

An appeal fee is payable as follows:

DP Amount Appeal Fee

If the new DP payable upon appeal turns out to be higher than the initial DP based on the DC Table of Rates, the appellant is not allowed to fall back on the initial DP amount.

If the appellant withdraws his application upon receiving a higher DP after appeal, he will be barred from applying for the lifting of title restriction for 6 months.

You are required to submit an application form for the payment of differential premium to SLA. The following information has to be included in your application:

• Photocopy of the planning approval (Provisional Permission, Written Permission and any extensions to the Provisional Permission) for proposed development.
• 2 copies of site plan. The site plan should contain the following particulars:
• all existing roads, cadastral boundaries, lot numbers and Mukim/Town subdivision boundaries, and
• the development site edged in red.
• For non-strata developments, if the lots within the development site are owned by more than 1 owner, the application must be jointly submitted by all owners.
• For strata developments, if the Management Corporation wishes to apply for payment of differential premium on behalf of its subsidiary proprietors, please furnish documentation on the special resolution authorising the Management Corporation to submit the application, accept the offer and to execute the supplemental title on behalf of all the subsidiary proprietors.

Where a State lease does not specify the use and/or the maximum allowable intensity for the land, Development Charge may be payable in respect of any enhancement in land value arising from a development proposal. With effect from 1 Sep 2011, subject to certain terms and conditions being satisfied, a lessee may be exempted from paying Development Charge if Differential Premium is paid for the enhancement in land value. For more information, please refer to the circular.

SLA's responsibilities include the administration of State leases, which have specific tenures determined at the time of the sale of the land. Property owners can apply for renewal of leases. Each application has to be considered on its own merits, bearing in mind the Government's long-term plans for land uses and in consultation with other government agencies. Please refer here for the latest Lease Renewal policy. FAQs on the lease renewal can also be found here.

To apply for renewal of lease, please download this application form and send your completed application form, together with the required documents and processing fees, to:

Singapore Land Authority

55 Newton Road

#12-01 Revenue House