Before we decided to buy a leasehold property in Petaling Jaya, we were advised by a relative who is a lawyer, that there is practically no difference between a freehold and a leasehold property in terms of security, because both are subject to compulsory acquisition by the government. But of course, there is a significant difference in value because of the uncertainty related to the latter.
When our son bought the house in Section 14, the remaining period of over 50 years was deemed good enough for his life time. But now that we have a grandson, our son has to think of his son too! For his peace of mind, he is thinking of extending the leasehold period after reading the following article in today's Star...
Longer-term payment needed to settle premium fee
BY EDWARD RAJENDRA
Excerpt:
"HOMEOWNERS with a short lease on their properties are urged to take up the Selangor government’s 30% discount offer on the rate of premium for lease extension.
Local Government, Studies and Research Committee chairman Datuk Teng Chang Khim said the discount was for residential properties and must be settled within six months."
"How to calculate:
1/4 x 1/100 x Market Value of land (in sq ft) x Number of years to renew x Land area (in sq ft).
Example: 3,000 sq ft house with 10 years remaining on the lease (valued at RM120 psf), the lease renewal fee is –
0.25 x 0.01 x 120 x 89 x 3,000 = RM80,100.
Amount to pay – RM80,100 - (30% discount) = RM56,070.
More:
http://www.thestar.com.my/News/Community/2013/12/03/Longerterm-payment-needed-Senior-citizens-say-six-months-not-enough-to-settle-premium-fee.aspx
In an earlier related article:
'THE 30% discount offer on the premium for lease extension is a good deal, Local Government Datuk Teng Chang Khim said.
“We are aware that we have an aging population and the discount will help senior citizens to extend the lease on their properties.
“The discount is really a good deal and it will help the houseowners,” he said.
Teng said the Selangor government had drawn up another scheme to help those with financial constraints.
“Under this alternative scheme, the houseowner pays just RM1,000 for the extension of the lease, provided the owner does not sell the house to exploit the scheme to make a profit,” he said.
He explained that the Selangor Land and Mines Department would lodge a registrar caveat on properties taking up the RM1,000 scheme, to prevent the owner from selling the house.
“However, despite the caveat, the state allows the owner to transfer the house to their next of kin or family members.
“At a later juncture, if the owner decides to sell the house, then the full rate of premium must be paid,” he said.
http://www.thestar.com.my/News/Community/2013/12/03/Its-a-good-deal-says-Teng.aspx
Link
When our son bought the house in Section 14, the remaining period of over 50 years was deemed good enough for his life time. But now that we have a grandson, our son has to think of his son too! For his peace of mind, he is thinking of extending the leasehold period after reading the following article in today's Star...
Longer-term payment needed to settle premium fee
BY EDWARD RAJENDRA
Excerpt:
"HOMEOWNERS with a short lease on their properties are urged to take up the Selangor government’s 30% discount offer on the rate of premium for lease extension.
Local Government, Studies and Research Committee chairman Datuk Teng Chang Khim said the discount was for residential properties and must be settled within six months."
"How to calculate:
1/4 x 1/100 x Market Value of land (in sq ft) x Number of years to renew x Land area (in sq ft).
Example: 3,000 sq ft house with 10 years remaining on the lease (valued at RM120 psf), the lease renewal fee is –
0.25 x 0.01 x 120 x 89 x 3,000 = RM80,100.
Amount to pay – RM80,100 - (30% discount) = RM56,070.
More:
http://www.thestar.com.my/News/Community/2013/12/03/Longerterm-payment-needed-Senior-citizens-say-six-months-not-enough-to-settle-premium-fee.aspx
In an earlier related article:
'THE 30% discount offer on the premium for lease extension is a good deal, Local Government Datuk Teng Chang Khim said.
“We are aware that we have an aging population and the discount will help senior citizens to extend the lease on their properties.
“The discount is really a good deal and it will help the houseowners,” he said.
Teng said the Selangor government had drawn up another scheme to help those with financial constraints.
“Under this alternative scheme, the houseowner pays just RM1,000 for the extension of the lease, provided the owner does not sell the house to exploit the scheme to make a profit,” he said.
He explained that the Selangor Land and Mines Department would lodge a registrar caveat on properties taking up the RM1,000 scheme, to prevent the owner from selling the house.
“However, despite the caveat, the state allows the owner to transfer the house to their next of kin or family members.
“At a later juncture, if the owner decides to sell the house, then the full rate of premium must be paid,” he said.
http://www.thestar.com.my/News/Community/2013/12/03/Its-a-good-deal-says-Teng.aspx
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