Hi all,

I've been meaning to find out, but no one seems to have an answer given that it probably hasn't happened in Malaysia yet.

But, what happens when a leasehold of a condominium or apartment ends? Unlike a landed property where you can renew your lease, what of if certain units in a condominium do and certain do not?

Then again, I suppose the same problem would occur for a lot of landed properties like terraced and link houses.

Pandemonium to ensue?

All comments are appreciated

When a 99 yrs lease run out...the building probably be condemned and need to tear down and rebuild....
The piping, the wiring all no good already.

When lease expires, government takes back. Government might give you option to extend but it is not your right. What pandemonium? There is no pandemonium.

the pandemonium happens when 1/2 the owners want to pay to renew and the rest don't want. cue lots of shouting, scratching of cars , and etc.

It is not tested in malaysia, but from what happened in singapore , u can either

1) if very well maintained, owners can top up the lease if state government no issue with that but that would require almost 100% owners agree to pay their portion and agree to the top up formula. To me sound like impossible in malaysia.

2) en bloc sales to developer, in hk & singapore u need only 70% and 80% owners respectively to trigger mandatory force sale. In malaysia , u need 100% owners agree to it. Although the government has plan to amend legislature to ease the process of en bloc, i wouldnt bet on it. If i m developer , i would question the effort to acquire leasehold condo enbloc i.e to get state government consent , bumi units owners, surrender lease, top up lease etc.

Conclusion is as owner of old leasehold condo , at this moment u should probably not have any expectation other than zero scrap value of the land.

Thanks for the explanation!

Just my concern, after the end of lease period, will an old condo still safe?

In my personal opinion and Malaysian style and culture, by the time the condo reaches 99 years. The building will be unfit to be occupied already. Developers will setup and a building management entity for the first few years and then normally pass to local resident committee to manage it and these people are not professionals. Even though they can engage a third party professionals to manage the building but when comes to decision making and money matters all hell broke loose. Then start the story of cutting cost here and there. Paying this and that which which may or may not exist, etc.

This post has been edited by VOOSH: Apr 16 2016, 06:51 AM

Curious, since it's leasehold land why wouldn't developer wait till government took it back then approach state gov to propose to buy it? Easier, simpler, faster since can be done with new lease altogether, and probably cheaper since they can bribe the MB

How many are willing to stay at their grandparents place? How many condo is still desirable after 30 or 50 years?


This post has been edited by icemanfx: Apr 16 2016, 09:14 AM

So how? State Gov "force take back" the condo?

99 years later, price increase... my cucu cici will sell out to developers ....hahaha

if the leasehold condominium will be unfit for future stay when it reached the leasehold period, how about those freehold?

Don't the same issue will apply? So what is the advantage of getting a freehold than a leasehold if both need to be re-build, except the free "land" in the air?

For what amount of lease yrs you looking at?

If 99 years, why u worry? U will be long dead.

If 60 years or less, unless u are 20yrs old and below. U probably be dead too.

I have no idea why freehold and leasehold a concern other then upon transfer freehold takes about 3 mths, leasehold about 6mths. Freehold typically 10-20% cheaper then leasehold.

Can sell the unit to developers after 99 yrs?
If developer dont want to buy + cannot be renewed / extension the leasing period, the property will be "worthless"?

Freehold cheaper?? Why?

oops....sorry, leasehold 10-20% cheaper then freehold.....hahahah

Maybe because freehold has better appreciation and higher resales value? Ppl need no worry the land or building to be taken by government when the lease end.

Yah I don't really care much as I would be long gone by the time the lease ends.

Just buy and enjoy the stay / making money (rents, etc).

Doesn't not matter what happens after 99 years, bcos:
1. The condo will not look like a condo any more.
2. Some developer/agent will offer to buy-out the condo long before the 99 years lease ends (eg: Desa Kudalari in KLCC) and owners will get a lot of moolah which they will never say no to.
3. The first few owners will be long dead already.

This post has been edited by kamilnu: Apr 25 2016, 10:44 AM