Greeting to all friends in Lowyat Forum.

In relation to premium payable to renew leasehold shoplot in Selangor, the formula is as follows:-

FOR COMMERCIAL LAND IN SELANGOR
3/4X 1/100 X value of the land X term of new lease minus balance of existing lease

As an example for a commercial land with 35,000 sq ft in land area and with a remaining lease of 30 years valued at RM 150 per sq ft: 3/4 X 1/100 X 5.25 million X 69 years = RM 2,716,875 is the premium payable.

My doubt is as follows:-

If I am renewing lease for a leasehold 3 storey shoplot (with SPA value of RM4 million), the value of the land is:

-based on land + building on it?

OR

-based on vacant land (irrespective what building is built on the land and authorities will value the land as if the land is vacant)?

OR

-they will directly adopt SPA price of RM4 million as value to calculate the premium?

This post has been edited by MAC5: Jul 24 2024, 11:56 AM

land only

do you have experience of renewing lease? can please share the experience for case study?