Leasehold Extensions

Leasehold Property in Malaysia is property that you lease from the government for a period of X number of years. In Malaysia this period varies from 30 years up to 999 years. 99 years is the most common leasehold term for properties in the country.

The formula for calculating the premium for extension of leasehold land is found in Selangor Land Rules 2003 & Selangor Quarry Rules 2003.

The formula to calculate the premium for lease extension for residential property is:

1/4 x 1/100 x Market Value of Land (RM/sf) x (Lease period – remaining years of lease) x Land Area

Option 1: To pay the full rate of premium with a 30% rebate.

Or

Option 2: To pay a premium 

For Kuala Lumpur

The formula for calculating the premium for extension of leasehold land is found in Federal Territory of Kuala Lumpur Land Rules 1995.

The formula to calculate the premium for lease extension of residential land:

1/4 x 1/99 x Market value of land (RM/sf) x (Lease period – remaining years of lease) x land area

The formula to calculate the premium for lease extension of commercial and industrial land:

1/2 x 1/99 x Market value of land (RM/sf) x (Lease period – remaining years of lease) x land area

Should you get require professional advice for other further update details. Thank you

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The FREEHOLD of a property owns it outright, including the land it's built on. If you buy a freehold, you're responsible for maintaining your property and land, so you'll need to budget for these costs.

It is every man’s dream to own a private house and have the title registered in his name. It is a status symbol of success.  There are many comments of such nature where we hear:

- property is a hedge over inflation
- it is an investment for the future
- The family property is to be handed down to the next generations
- a symbol of security for the family
- a retirement plan, successful property investment, returns and more

Any legal interests in a property lie within the grant or its title