Leasehold Property Extension or Renewal
Leasehold properties in Malaysia are built on State Government land and have a finite term (e.g., 30, 60, or 99 years). Upon expiry, ownership technically reverts to the State Government unless an extension or renewal is approved.
Law Chambers of Y Tan provides legal support to individuals and corporations for the entire process of applying for the extension or renewal of a state government lease across various states, including Selangor and Wilayah Persekutuan.
Leasehold Definition
Property built on land owned by the State Government, with ownership limited to a fixed term (30, 60, or 99 years). Ownership is lost if the lease is not renewed upon expiry.
Application Process
Legal assistance in submitting the application for extension or renewal of the lease to the relevant
Land Office/State Government.
The process typically takes 6 months to 2 years to complete.When to Apply (Critical Timing)It is strongly recommended to apply as early as possible, especially when the remaining lease is less than 30 years. Banks are generally hesitant to finance properties with short lease tenures, which causes property value to decline. Applying near or after expiry carries a high risk of rejection and heavy penalties.
Renewal Costs (Premium)
The renewal requires a premium payable to the State Government. The firm advises on the calculation of this premium, referencing formulas applicable to areas like Kuala Lumpur and Selangor.
Strata Title Extension
For leasehold properties held under a strata title (e.g., condominiums/apartments), the application for lease extension must be handled collectively by the Developer/Management Body/JMB/MC, not by individual unit owners.
Risk of Expiry
If the lease expires, the land automatically reverts to the State Government. The property may then be open for the public to apply for ownership, incurring huge financial loss and large acquisition costs for the original owner.
Need to renew your lease to protect your property value?