Friday, December 23, 2011

Renewing the Lease of Lease-hold Properties

One might remember that back a few years ago, many aged property owners in Petaling Jaya were thrown kicking and screaming out of their homes as the 99-year leased has expired and the government wants the land back. These poor old folks inherited the houses from their parents who in turn inherited them from their parents... So, the saying about not being able to out-live your 99-year leased hold property does not hold water after all.

So, some of these old chaps who have no money nor family to take them in, retired from their jobs and too old to get a bank loan to buy a new house eventually ended up in welfare homes. Sad, but true.

Actually the lease for a leased-hold property can actually be renewed by a simple application and payment of fees. There is a method to compute the fees by considering the land size, the property valuation and the number of years the lease is due. However, the fees can come up to well over RM10,000 and even as high as RM50,000 or RM60,000. Many of course don't have this kind of money.

I've just learnt that the new Pakatan Rakyat state government of Selangor has introduced a scheme whereby owners only need to pay RM1,000 to renew the lease up to 99 years. To deter profiteers and speculators, terms and conditions apply... one of them is, if the owner wants to sell the house, he has to top up to the original fees before he can do sell it.

For more details, visit your District Land Office...

1 comment:

Anonymous said...

i think this is a good move, will not happen under BN....