Mortgages beyond 2047

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  1. #1

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    Mortgages beyond 2047

    How are banks in HK approaching mortgage terms that are 30 years at present, where the lease remaining is 29 years (i.e. expiring in 30 June 2047)?


  2. #2

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    Quote Originally Posted by dossier:
    How are banks in HK approaching mortgage terms that are 30 years at present, where the lease remaining is 29 years (i.e. expiring in 30 June 2047)?
    They honor 30 years

  3. #3

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    Quote Originally Posted by cookie09:
    They honor 30 years
    Do we all just ignore 2047 and look beyond it? I suppose the expectation is lease are extended automatically (or for a nominal sum).

  4. #4

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    Great. So "short leases" - i.e. 29 years to 2047 are a non-issue in the HKSAR (vs. short leases in the UK; where the freeholder is generally a private firm / individuals). Because in the UK, so much is made of the issue of "paying through the nose" to extend leases that have less than 80 years (Marriage value etc.)

  5. #5

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    Does UK charge to extend leases?

    No idea what HK will do. Whomever is in charge will decide what to do probably a day before 2047. Lol.

    But generally no one is thinking about it. I now think the idea of leasehold is just to say that the country owns the land instead of an individual. Which anyway even if you have freehold you can get screwed by the govt taking your land. I guess in HK they wouldn't take your land during your lease and if they did take at expiry would come with due compensation. Even squatters are getting 250-600k HKD payouts for taking their huts and they have no legal rights.


  6. #6

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    Yes in the uk you can pay to extend the lease of your property so in reality it never really belongs to the government you just pay a few thousand to extend it, its not actually that expensive to do


  7. #7

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    I've heard of these before in Baltimore where one owner would own the land and "lease" it while the other owner would own the structure. There would be a small fee to pay to the owner. Forgot the rest.