Anyone has invested in leasehold commercial shoplot 3 storey?

can kindly please share your experience?

Because I am currently hesitating whether to proceed with purchase of a leasehold commercial shoplot 3 storey (individual title).

I have concern on the leasehold remaining of 85 years only. But it is at a good strategic location.

Good thing is it is individual title, not strata title. I can easily instruct lawyer to do application for lease renewal for own lot, not need to wait for all strata title owners. Just need to pay premium with own fund only.

Hope any sifu or taikor with experience in commercial property can share your valuable opinion for learning purposes.

Regards.

This post has been edited by MAC5: Jun 28 2024, 12:00 PM

Thank you Sir for your advice.

Yes correct, no lift, only have staircase. Top floor difficult to rent out.

This post has been edited by MAC5: Jun 28 2024, 02:23 PM

has anyone done renewal of lease previously?

how is the process and how they calculate premium?

Commercial Land in Selangor

3/4 x 1/100 x value of the land x term of new lease minus balance of existing lease.

As an example for a commercial land with 35,000 sf in land area with a remaining lease of 30 years valued at RM150 per sf.

3/4 x 1/100 x 5.25 million x 69 years = RM2,716,875 (premium payable)

For industrial land in Selangor, formula is same as commercial land.

Someone told the above to me.

Thank you for your opinion.

Anyone has renewed your lease for leasehold shoplot?

how they calculate your premium payable? Selangor state.

some think it is based on value of the land itself as if it is a vacant land. some think it is based on market value of the building itself.

In other words, lease renewal premium is based on value of vacant land or based on value of vacant land plus building on it?

This post has been edited by MAC5: Jul 22 2024, 09:40 AM