99 years extended?

I only knew success, how many years dont know

I kena similar case back in 2009.
Owned a freehold condo with "restriction in interest" in Bkt Jalil.
Needed to get approval from Jab. Tanah & Galian KL before can transfer.
Took quite a few months.

Huh?

Since when you need to re-buy the house?

Just pay the lease extension la... as for his calculation of RM150k to extend the lease.. he pull the number out of thin air..

for example

https://www.edgeprop.my/content/lease-renewal-just-rm1000

Only 1k, not 150k. The owner smile to the sky

Freehold still have "restriction in interest". What is the restriction stated in the Title?

"Repurchase"

Someone is making a joke out of himself.

I don't know that what the guy before me said. Anyway I did a little more research. There are many links saying renewal in Selangor is just 1k as you've shared. But then there is this

https://www.google.com/url?sa=t&source=web&...5oWaWpQ3C4Pi2pn

"Keep in mind that the calculation of the premium rate as mentioned above is for the land itself. It does not include the building constructed on the land. "

Can anyone confirm if during renewal the building has its own premium to pay as well?

chamelion

IF renewal is approved. I can't deny that knowing the renewal is that cheap in Selangor has to a certain extent shed some positive light on leasehold properties, but if you read carefully, if the lease is not renewed or the renewal is rejected, the land is returned to the state automatically.

Also, I am not surprised with the state of things in Malaysia, this 1k thing can be uturned.

In law yes, if authorities refuse to renew they can take back the land. In history never happen before

future always nobody know

That is why in my first post i mention the rate is subject to location.

I think what they meant was the value of building is disregarded ... only market value of land is taken into consideration ... the buildings no need to pay anything to renew one because the law does not care if there is a building on the land or not

But if u extend the leasehold by paying RM1k, you cannot sell the properties, only can stay there or rent out... there’s a caveat on the land, if u want to sell, u still need to pay full premium ...

Just only that, no other description listed.
This adds another hassle when you need to get approval from the KL land office if you want to sell/transfer title.
When you guys are prospecting freehold props, do keep an eye out for this clause.

https://www.facebook.com/tensharing/videos/346646133449440
Just came across this. It gave an idea on how to lease renewal fees are computed.

the last part of the video is similar to the example I gave. It put the buyer in a difficult position, that is why the property is no desirable.

Welcome to PJ property....

What will happen to those paying millions for terrace house in teluk panglima garang in 30 years?

As a property investor with more than 10 landed properties over a period of more than 20 years time frame.
I would say the location, concept, and township potential are more important than leasehold/freehold.
I own both leasehold and freehold landed properties.
I can affirm that some of my leasehold properties yield better returns ( rental and capital appreciations) than my freehold landed properties.

Developers nowadays are putting a premium pricing on their freehold properties compared to leasehold properties.

One example, a freehold landed property I was considering is priced 200k-300k more than a similar size (built up and land size) leasehold landed property.
One has to pay extra 200k-300k money to get a freehold property. On top of that, not to forget, with a bigger loan is more interest payment. A 300k more loan principal could cost an average 12k per annum worth of interest payment (assumption interest rate is 4%)

At the end of it, I went with the leasehold property because I feel the area the leasehold property is located has a greater long-term potential.
The cost of renewing the lease in Selangor is $1k (if ones plan to continue to stay or pass on the next generation). If one plan to sell after 10-30 years, there is always an option to renew the land lease back to 99 years. One only needs to pay the number of years difference between 99 years - remaining years left on the lease. (don't need to pay the full 99 years lease premium) . The land lease renewal premium is much lower compared to the premium price and its corresponding interest of a freehold property.
So the choice is between paying the freehold premium price upfront + interest vs land lease renewal premium if and when one decides to sell.
If the property is mainly for own stay and passing on to next generation, no need to worry so much about the land lease premium lah (to be honest)

My advise to folks, just buy a property that you like and can afford.
Leasehold vs freehold is not the be-all end-all. Location and township potential are more important.

This post has been edited by harrywilsome: Mar 27 2021, 11:35 AM

Just add on something quick. When you buy a leasehold property, do take note. 99 years do not mean you have 99 years after VP. Sometimes you get only 90 years because the developer takes 9 years to plan, sell, build and transfer to you. Do note the title or SPA state how many years left. Normally will have expiry date.

Also do take note for renewal typically different states got different rules on that. Yes leasehold typically should be 20 to 30% or more cheaper than freehold for similar projects.

This post has been edited by joeblow: Mar 27 2021, 10:14 PM

Great sharing.

This post has been edited by MAC5: Mar 28 2021, 11:16 PM