See the calculation method, the value of the property cannot be over than the market price of the property as the price is calculated lower based on the market price at that time of the per sqft.

That is why Selangor came out with this RM1K scheme for all the renew the leasehold on condition you cannot resell unless you pay finish the sum.

This is the question, why will the property price decrease if the land value keep increasing as both is inter related? If the land become valuable after 99 years, how on earth will your unit become 0? I just look at the house property, if you buy at 70s till now, the price raise atleast 10 times more.

If it is been offer to extend the leasehold, high chances everyone will agree as it is simple maths calculation.

This post has been edited by stevenkkh: Apr 17 2018, 02:48 PM

This no longer related to the developers. Plus this is really political as if Gov or State Gov take the land back to resale to another developer.

Example will be all the upcoming leasehold house which is been offer to be able renew. If the State Gov want to be rich, yes, they could stop all renewing process of leasehold and resell all the high price land but due to political reason, they are reluctant to bear such reputation.

This is the scenario with a if everyone been offer for extend leasehold, a simple maths will show it is the most beneficial. As times goes by, the so called unanimous decision can be translated to majority, who know that every single one need to agree and just majority will do. Those does not agree will lose their ownership when the times come, as easy as that. Maybe at that time, more will be interested to get cheaper property from all this so called people who don't want to extend their leasehold

No one could guarantee what will happen in 99 years time whether the lease will be renewed, who will be the local government, etc.

for reasons, why banks are reluctant to accept collateral with less than 50 years lease left.

most locals prefer newer condo, hence, older condo price appreciate slower than inflation rate or market rate. hence, older condo is only worth the land it is sitting on.

if the gomen is people friendly, instead of 99 years lease should issue 999 years lease.

Yes, the price will increase and hardly going backwards till your buying price.

When state gov has no immediate plan for the reuse of the lans, they will offer extension. Pls note that extension most likely wont be 99 yrs. Also i think you cant sell the property once you requeat for extension.

Most condo reaches 99 yrs....am afraid its close to be condamned jor......

just addressing your comment in red.

if land become more valuable after the 99 years lease expired also, nothing to do with you, true ownership is with the lessor.

you think freehold meh? freehold can sell and enjoy the full 100 times or whatever appreciation over original price after 99 years. can leasehold do the same? need to pay market rate premium first only sell back at market rate right? make how much?

Again, the same question again and again, refer to the calculation method above and you will know it will definitely be lower than the market price, maybe 2/10 of the market price to renew back.

After lease end, it will usually be back to the state government, this is where the political cause come into picture on why they refuse to renew the lease.

This post has been edited by stevenkkh: Apr 17 2018, 05:11 PM

For house, the lease period is standard, 99 years and no clause for not selling condition after renew. This is real example as I see my relative done that. Selangor even provide the guide to renew without asking lawyer to assist you (save you from huge lawyers fees).

As you see, you only cannot sell after renew if you subscribe to special scheme like the one in Selangor, just pay RM1k to extend and when you want to sell, you have to pay back the full premium you owe them (no idea how is this calculated as compare to previous renew time market price of sqft or the current market price of sqft)

This post has been edited by stevenkkh: Apr 17 2018, 05:05 PM

lol this is like tenant tell the landlord what they should do. you assume the lessor MUST agree for the lease to be renewed at a price that is agreeable to YOU, anyway you are free to assume anything you want.

If the building is still there when the lease is nearing its expiry, then we'll have to see how the gov't handles the negotiation with the current owners, assuming that the lease haven't been renewed yet or they have plans to redevelop the plot of land its sitting on. But, as we all know, anything can happen before or up till that point.

Another scenario is when a developer comes along and 80% of the owners agree to sell their units to them. They buy up the whole condo, compensate the stubborn 20%, then takes over from there. Saves the gov't the headache of spending money to buy it.

All guesswork atm until the time comes.

I doubt leasehold or freehold have anything to do with errant owners not paying their maintenance fees. The condo I'm staying in is around 25 years dy, sitting on freehold land, but there are still about 20 or more unit owners who owe the management the maintenance fees, some stretching as far back as 3 months or maybe more.

Some of them could be investors or a small number of stubborn owners who insist on not paying a single cent on the maintenance.

This post has been edited by DesRed: Apr 17 2018, 11:13 PM

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

Current policy on lease renewal is not permanent or guaranteed.

don't tell me to follow topic when you are talking about renewing landed leasehold in this condo thread. does what you say apply to condo?

i made it clear i was responding to your statement "If the land become valuable after 99 years, how on earth will your unit become 0?"

why not? you think all lease impossible to expire?

i have earlier attached the link of sg people losing their leasehold homes they have bought with lease shorter than their lifespan, so not every government is like petaling jaya and not every generation of pj government is guaranteed to be unchanged.

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.

you assume it is impossible for lease to expire, and you are believing that the lessee can still sell property he does not have the lease to.

i provided a link for real life case of leasehold property price dropping to zero for the buyer.

you also refuse to believe there are situations where a lessee is unable or does not want to renew. tell me, when did the rm1k lease renewal start? what was before that? does rm1k renewal apply nationwide?

also renewing a lease is renewing a lease, don't call yourself owner. you are a tenant or lessee.

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

Are multi storey residential built to last 99 yrs?..if building collapse..which part of land to sell?

anyhow.... in the end no one can assume for sure what will happen when the lease is running low especially for leasehold condos.... the main issues will always be condos or strata title leasehold property... its harder to get the majority agreement to renew than individual title landed.... the problem is some might wanna renew using the 1k for own stay some might wanna renew for future reselling... there will always be disagreement between big amount of owners....

generally now if im a leasehold condo buyer... i will try to sell the condo before the lease become less than 70 years... or if i wanna keep it for good rental income purposes... i will just let the lease run on natural course... the renewal issue will be handle by next generation who gotten the inheritance...