QUOTE(victor0606 @ Sep 7 2018, 09:57 AM)
From what i understand is the formula is according to the market value of the land, the more expensive its then the more will need to pay in the future.
Does that mean its according to the formula:
Premium = ΒΌ x 1/100 x Market Value of land (in sq ft) x number of years to renew x land area (in sq ft)
Example: For a 3,000 sq ft residential property in PJ with 10 years remaining on the lease (assuming it was valued @ RM120 per sq ft by the Authorities), the lease renewal fee calculation is= 0.25 X 0.01 X 120 X 89 X 3,000 = RM 80,100.
The market value of the land its depends on the value we bought at that moment or the market value of the land when we wanna renew?
If its following the market value of the land when we wanna renew like 99 years later, wouldnt it be super expensive?
ultimately if we wanna pass the property to our children, isnt it will be a burden to them?
sorry if i said anything wrong. correct me if i am wrong. thank you.
victor honestly it doesn't apply to EG now or the next 50 to 60 years. State gov wont renew any leases until left with 30 or lesser years.
market value = value at future date when renew application is applicable.
Also I think Selangor has special rate of rm1k per year renewal IF the house is used for ownstay (now ok, not 99 yrs later). BUT if you sold before the renewed period is up, you need to repay the lease based on market value.
Also 99yrs later, your Rm80,100 might be equal to present value of rm8k nia.