If you are buying a house to stay, then you should consider location rather than whether it is freehold or lease hold. 99 years is simply a long time and good for two generation.

so what happens after the leasehold expires?..u have to move out and u loose all the $$?..

Anyone experience taking loan on sub-sale leasehold property?

It make a hell of different between freehold.

I find it strange that you guys are talking about the government taking over your property. Unless it is located in a strategic area to be developed, the likelihood of this happening is negligible. The government cannot simply take over your property for the sake of doing so. There is such a thing called legal process. There is such a thing called accountability.

Other than that, there's no particular difference unless the leased tenure is getting shorter and shorter.

It's stated in the contract that the Government can really take over your property when the land tenure is up.
Sorry; but it's in the LEGAL procedures when you signed it.
However, they might compensate you which I would presume the amount would be "little" and gave you enough time to evacuate.

Anyway a lot had mentioned; it's more lengthy and involves more time and procedures when names are to be transfered. I.e. by the way of selling properties or normal transfer of names or adding of names to the properties.

Other than that, there's no particular difference unless the leased tenure is getting shorter and shorter.

actually, there is 1 more major difference between freehold and lease hold properties, which is the pricing.

Other things being equal, freehold props often commands a minimum 25% premium in prices as compared to leasehold props. Hence why IMO freehold props rarely generates good returns 

that I wouldn't agree with you.
Now it's all about location.
Again, there's hardly any comparison to start with.
Look at Tropicana for instance; doubted that even if it's freehold; the price is already at it's high. Freehold or no freehold doesn't make any difference there.
Look at wangsa maju now. Eventhough the area is mostly leasehold; now it commands quite high demand.

Unless of course the land or property lease left like maybe 30 years to end. If not, new areas are popping up and selling like hotcakes in high prices no matter free or lease hold.

Let's take for example, properties in Section 1 in Petaling Jaya. The properties in average have about 20 years to 30 years left in the lease and residential land values are averaging at RM28-RM30 per sq feet (psf). Though the prices are about similar to what it was 10 to 15 years ago, it takes longer to find buyers, with the market being very limited to existing residents.

In contrast, let's look at Section 5 in Petaling Jaya, where property has a longer lease tenure left of 55 to 70 years , and have seen considerable appreciation of about 30 - 40 per cent in the last 10 to 15 years, even though the lease tenures have been reducing. This appreciation is comparable to those of freehold nature.

Land titles come under state governments and the ft land commissioner for ft. This is constitutional. There is nothing in the national land code concerning lease renewal. What the land office issues are titles and owners are either owners of freehold or of the lease. Upon expiry there is no obligation of land office to grant a new lease. In practice what happens is that the unencumbered remaining lease is surrendered in exchange with a letter of undertaking that it will be Realienated back to the holder. Holder then applies for realienation and pays the necessary premium which is quite cheap. In some cases, the approval of the local authority and a requisition survey is reguired. Please get more advise from a licensed land surveyor who would be able to advise you and recommend a lawyer versed in these matters for your particular case.

1) The renewal will all depend on if the government or the Federal Territory gov has any new plans for development in the area. But usually lease renewal no problem. I have many clients whom renew their lease in KL with no problems.

2 & 3) Lets see, if you look under the Federal Terrotory of Kuala Lumpur Land Rules 1995, under part 3 Premium rule 9, Premium on lease to be realienated.

(1) When an expired lease is to be realienated to the former registered proprietor, the rate of the premium to be determined by the Gov. is one quarter of those specified in subrule 8(b) and shall exclude the value of any building or cultivation then found on land.


(subrule 8 (b) where alienation is by way of lease, the rate of premium to be charged shall be calculated as follows and the value of the land to be calculated shall be determined by the Gov. based on market value of the land:-

For residential
1/4 x value of land x 1/99 x term of lease=premium to be paid)

(2) If the period of lease has not expired, the rate if premium to be charged shall be calculated as follows:-

1/4 x category of the land use x value of the land x 1/99 x (term of new lease minus balance of existing lease) = premium to be paid.