What is the formula to calculate leasehold extension cost? How much to pay for the extension of residential leasehold land? I’m sorry, I am confused too. Couple hours of searching in google do not found me a firm answer for the questions highlighted.
But, there are two interesting articles are found to share with you here:
- Info 1: Who is going to be responsible if the application for surrender was approved but the application of land was rejected, as in the case of Sg Chua villagers (who are now left with no renewed titles and unfortunately affected by SILK)? Source: Ronnie Liu Tian Khiew
- Info 2: Leasehold renewal demystified by Eileen Ng NST-PROP. Source: National House Buyers Association (HBA)
Confusing Formula of Leasehold Extension Cost Calculation
- Info 1: 50 sen per sq ft for another 60 years, RM2.50 per sq ft for 99 years
- Info 2: The premium charged is based on a formula stipulated in the Selangor Land Rules 1966
- So cheap?
- Leasehold Extension Formula for Residential Areas:
½ x 1/100 x land size x market value of property x tenure of lease
Leasehold Extension Formula for Commercial and Industrial properties:
¾ x 1/100 x market value of property x tenure of lease
Land size = square feet? Meter square? Others?
Tenure of lease = remaining tenure of lease? New tenure of lease to apply? Others?
Anyone? any idea? Welcome for your sharing!
I hate laws! All the clauses are so so so so difficult to understand. LOL!
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Info 1: 50 sen per sq ft for another 60 years, RM2.50 per sq ft for 99 years
So cheap?
Info 2: The premium charged is based on a formula stipulated in the Selangor Land Rules 1966
Leasehold Extension Formula for Residential Areas:
½ x 1/100 x land size x market value of property x tenure of lease
Leasehold Extension Formula for Commercial and Industrial properties:
¾ x 1/100 x market value of property x tenure of lease
Land size = square feet? Meter square? Others?
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Let’s say RM 15/sf for residential properties, and your land size is 22′ x 75′ to extend for another 99years, that is RM 12k !!!
Market value of property is based on RM xx for every square feet at the current market price. If you bought that land 60 years ago at RM 1.50/sf, and wants to renew your lease for another 99yrs, i doubt it is still at RM 1.50/sf now .