Seriously, you don't follow the topic at all, not assume, the fees already have a formula calculated for all leasehold property in Selangor which the main variable be the current market price of per sqft and as of now we don't have any condo example but there is countless of leasehold houses been renew like the PJ Old Town area which still have 10-20 years time and by the way, even my area which have leasehold house in PJ Sec.14 can apply in advance with 40 years remaining in leasehold. Yes, some already manage to renew in the sample I said.

All this thing is not assumption but a process already done by others but not on condo on leasehold land yet I believe.

This post has been edited by stevenkkh: Apr 17 2018, 10:51 PM

Then, you are the one saying all this assumption, meanwhile mine is based on current policy and current practices. Yes, everything can be change so I only can use current practice to judge.

Yes, this all apply to all leasehold property. By the way, this is not only in PJ, but we have an act with the extension of leases for leasehold properties is governed under section 197 of the National Land Code (Act 56 of 1965) pertaining to the applications for approval of surrender of the whole of the land, as well as the land rules of the various states.

For the state of Selangor, the extension of lease is governed by the Selangor Land Rules 2003 and Selangor Quarry Rules 2003.

And if you follow the argument of my statement "If the land become valuable after 99 years, how on earth will your unit become 0?", here some are stressing that even if they are given opportunity to renew, the owner might not want to renew which I said does not make sense as why someone will rather loss their ownership than renew.

Some even argue that the price of the property might be lower than the renewal fees that does not make sense as the maths calculation use for the formula to calculate the fees is making sure the fees won't be above the market price of the property.

This is where my argument come from, I believe majority will renew their leasehold instead of giving up the property if they will be offer to renew the leasehold period. Basically, the whole point is I don't believe the old condo price will decrease every year, the worst will be it will remain static on certain period of time after reaching peak of the price. Most of us have a loan of 30 years and here, we are been told, after 30 years, our condo will be decreasing in value? If yes, who will go buy the condo anymore just merely for the sake of staying?

This shock me if this kind of scenario happen like after 30 years of servicing my loan for this property then out of sudden someone telling me this property is worthless anymore. Property buying should be an investment, why out of sudden this become a liability instead to me in the point me retiring? This means you are losing money if you keep this property for long term.

This post has been edited by stevenkkh: Apr 18 2018, 12:51 AM

Seriously, I don't want to argue whether any policy changes or not as it is pointless which is why I can only use current practice for leasehold land as judgement.

If we really want to factor all assumption, who knows, maybe all freehold become leasehold also as government can change policy as you said. Who said this cannot be done? The law can even be passed to grab your land if it is needed by the government, who knows whether this is possible or not if we want to discuss all this possibilities.

By the way,this act or rules is on 1965, an act with the extension of leases for leasehold properties is governed under section 197 of the National Land Code (Act 56 of 1965) pertaining to the applications for approval of surrender of the whole of the land, as well as the land rules of the various states.

For the state of Selangor, the extension of lease is governed by the Selangor Land Rules 2003 and Selangor Quarry Rules 2003.

That is why I said this is related to political reason.

I said if we can renew the leasehold period and most of us will renew as it is weird for anyone to reject renewal process where here some said this hard to be done as some will not want to renew.

I am stressing on this property more which is in PJ under Selangor. Yes, this is for Selangor only. What happen before this? Very obvious, for scenario you are given a chance to renew but you rather lose the property instead of renewing due to non affordability, logically to said you will sell this to another buyer who is willing to buy factoring in the renew fees. Currently, only landed house I seen. So I judge based on existing scenario.

I have seen this happen as your selling price will be lower than any existing house which is freehold as they are factoring in the renewing fees. The buyer will survey the chances through seeing anyone successful in getting the approval within the area.

This is the whole discussion here.

I did not said it is impossible for leasehold expiring to happen and also I did not said there is no possibility the state government will not renew the leasehold. If this cannot be renew, then obviously you will lose the ownership. I don't know where you see I mention this. By the way, in Malaysia, I don't think it is easy to evict a whole population of a condo if we see from cases of all this illegal homes which is given compensation even without paying a cent for their so called home. This is just my opinion that high chance on the renewal approval and obviously this is just my assumption.

Yes, the scenario happen in Singapore which does not match Malaysia scenario due to the larger land with no shortage yet as we have countless of scenario of leasehold been able to renew as you can see the whole Old Town in PJ area able to renew. I haven seen such large scale of denied leasehold extension yet in Malaysia. As mention for Singapore case, this kind of scenario of a whole condo been evicted due to leasehold expiring is not happening yet also and they also wondering what will be the effect of throwing such a huge amount of people out if they are not renewing their leasehold property.

Funny if I buy this property, will you not telling others you are the owner of this unit? Are you going to tell others that you are a tenant or lessee as you mention here?

This post has been edited by stevenkkh: Apr 18 2018, 01:34 AM

I am looking more to current practice in Malaysia, we have sample cases just next door from Section 13, PJ, Old Town PJ and Sec 14, PJ, all leasehold property been able to renew from their 60 years and 99 years to new 99 years. So for now, we cannot really take Singapore scenario to compare with Malaysia as there is really a big difference in policy and supply. Another one is there is countless of example those illegal housing community been compensate with units, this is nothing new, you can search countless of that. This is how Malaysia works.

And yes, one of my neighbor in Jalan 14/20 manage to renew his property expiring in 35 years time which is just few streets away from this property. But all this is landed houses, but atleast this show that renewal process is not in low chances for this area.

Actually, this question of whether the building can last 99 years is not on leasehold or freehold anymore. Even if you have a freehold, the whole building collapse or the building no longer safe, even if you have freehold, you will come to the same question also.

Dropping to even below your buying price? High rise I am not sure but definitely not for landed houses. As my neighborhood is around Section 14, PJ, for example, the double storey leasehold houses which the buying price around 1970s around RM150k and even now, the last transacted price is RM700k that is yet to be renew. This is where after 50 years, your property is increasing by 4-5 times.

This is definitely not going to be the price if you manage to renew the property back which some already done even before the expiring date in 30-35 years.

This post has been edited by stevenkkh: Apr 18 2018, 11:58 AM

Everyone who is buying a leasehold property will be more interested to know about this, it will be a lie if you buy this property and less concern how this leasehold works!

Everyone is doing their homework and maybe you are not really understand how this renewal works that you keep mentioning that the sample case of landed house irrelevant without even understand about this. For your information, renewal process is about the land itself and not really on what is on top of the land.

That is why it is about the price of the current land in sqft.

"The calculation of the rate of premium as mentioned above is on the land itself and does not include the building erected on the land."

That is why regardless of is a house or condo, the calculation method is the same as they are looking at the size of the land been lease out to you and not the value of the building or houses on top of the land.

This is not irrelevant as the process follow the same act as "The calculation of the rate of premium as mentioned above is on the land itself and does not include the building erected on the land."

All leasehold property process use the same formula and yes, the process for condo will be more tedious as more owners involve. I just want to point out here renewal is not impossible task and that land around that area which is leasehold can be renew based on the surrounding neighborhood.

F: (1/4) x (1/100) x (Market Value of land) x (lease period – years remaining on the lease) x (land area). *Leases are usually renewed for a 99-year period.

As an example, let’s say you have a bungalow land with a land size of 7,000 sq ft in Petaling Jaya with about 45 years remaining on the lease. The premium that you would have to pay shall be as follows:

(1/4) x (1/100) x (220) x (99 – 45) x (7,000) = RM 207,900. After deducting the 30% rebate, it comes to RM 145,530 and this is what you would have to pay.

The above example is based on the assumption that the government has valued the land at RM 220 per sq ft.

See the calculation, assume RM500 per sqft, renew 99 years, normal double story, around 1600 sqft, will need around RM200K minus rebate 30% is RM140k, this is for Selangor only.

This post has been edited by stevenkkh: Apr 18 2018, 02:19 PM

If you use the Desa Kudalaris scenario which is built in 1980s, means around 40 years, let's said it is leasehold which have around 50 years and someone want your land, freehold or leasehold, you are in the same boat unless the interested party want to wait 50 years only and making sure the land is not been renew by the owner.

Obviously, the land value will be different, your buying price for leasehold property will be cheaper than freehold my friend. Are you kidding me? The price you buy also different, freehold you bought that time also much higher. When anyone want to buy secondary market for leasehold also, mention alot of time, they will definitely factor in the renewal process and the fees. Funny question you asking.

And by the way,the land still belongs to you while in leasehold, don't keep thinking the land does not belongs to you when it is just 20-30 years passed only. This is why anyone buying leasehold, they need to understand whole process and not just blindly jump in saying it is long time more.

This post has been edited by stevenkkh: Apr 18 2018, 03:09 PM

I think you are funny, you yourself also not happy till everyone said the same thing, I am discussing something related to this property on the renewal of the leasehold property and here you are the one saying this property is worthless as time goes by. By the way, do you even aware ryan and miho is a leasehold property? That is why this leasehold renewal come out and the issue that might happen in long term.

Who is the one talking something not related here actually? If you are interested with this property, obviously you will be interested to know the surrounding issue especially on your chances of renewing the leasehold, why on earth will I buy this property if I know this is hopeless property in long term!

This post has been edited by stevenkkh: Apr 18 2018, 03:20 PM

This is so funny, you are not interested with lh properties and here you in a leasehold ryan and miho property topic!

Funny, you want to debate the difference between don't care or not interested now.

So, you don't care about lh property, so why bother coming here to discuss a leasehold property!!!!!!!!!!!!

Bean counter, I seriously don't know you come from which kind of typical gen........

Seriously, why are we debating who is the owner as you buy the unit, now YOU ARE THE OWNER FOR 99 YEARS. But this is new to me, thanks for the info for the consent needed but anyway, consent or not, it is just part of the process to sell, it is not as if you cannot sell at all.

By the way, I have no idea how is the growth between lh and fh as lh is usually cheaper than fh. In long term, normally fh will be great in price.

Anyway, obviously fh will be better than lh, so there is no debate needed at that at all. By the way, I roughly understand the renewal process which is my question and just merely pointless to debate whether possible to renew or how complex it is as I just want to know the process if given the chance to renew. If giving option, fh will be the best but if somehow you like the location of lh property, just have to understand how far we can go with this for own staying while minimizing all possible losses.

So no point to said how good is fh as I just want to know all related process and option I have with leasehold property instead of just wait till leasehold expired and there goes the ownership returning back to the state.

Thanks all for the discussion, this make me able to understand more on dealing with leasehold property.

This post has been edited by stevenkkh: Apr 18 2018, 04:45 PM

I am more to type B, still looking at tropicana gardens also but it is much pricier there. Have been looking around that neighborhood for landed also, as the only affordable option for me will be those leasehold houses, RM700-750K, quite attractive but need big renovation.

I think you can follow back all the previous discussion on this for details thank to everyone in actively participating in discussing.

Non renewal means you return the land and everything on top of the land back to the state and move out from the land after the leasehold expired.

In Sec 14, there is successful renewal in that area, after you renew, you can sell unless you subscribe to the RM1k scheme, as for the renewall fees, you have to know the exact market value determine by them in sqft. The last one I see few months back is in Jalan 14/14 and Jalan 14/20, not sure whether still around.

If the RM500 per sqft in my example, your renewal fees will be RM200K but right now, I am not sure why have rebate 30%, so it will be RM140. By the way, this calculation is renew 99 years. Most of sec.14 houses is 50-60 years old with 99 years leasehold compare to Old Town that is existed with 60 years old.

If the house haven reach expiration, so the fees will be much lower as 99 years minus remaining years. Like Sec.14, your renewing years most probably around 50-60 years.

Really a deep thinking needed on this, anyway, so far we can see the option and even the worst consequences for leasehold on the discussion. Leasehold also have their market value, just like First Residence in Kepong, initial release price around 400-450k (Not sure whether lower as my friend buy at secondary market), but I believe just roughly 3-5 years, it is around 550-650k at peak for now.

Just thinking if all this leasehold condo tied to shopping complex, office tower, will you be in higher chances to renew or worst chance since the big developer might eat up your share of land also. Or maybe the value might be better than you stand alone, just thinking.

Leasehold usually in best position place which make them attractive.