A leasehold property is a property owned by the government. A leasehold property would typically be 30, 60, 99, or 999 years.

A Land Title will indicate if your property is a leasehold or freehold property. The lease period would also be clearly stated in the Land Title.

You should be aware of the lapse period of your lease and proceed with extending the leasing period. Else, your property will be handed back to the government. That being said, lease extension for a property is not as difficult as it seems. We shall take a look at how to apply for a lease extension for your property

Lease Extension Application

Application for lease extension should be submitted to Land Office (Pejabat Tanah).

These are the documents you may need to prepare for lease extension:

  • Borang 12A ‘Permohonan Untuk Menyerahkan Balik Tanah’
  • Borang Perihal Tanah
  • Original Title
  • Paid Quit Rent and Assessment Rent
  • Copy of NRIC

Land Office may update the checklist from time to time. Do not hesitate to ask for the latest checklist to save yourself from multiple visits to the Land Office.

Once all the documents are compiled and submitted, the Land Office will issue Notice 5A (Notis 5A) where you are required to pay a premium.

How to Calculate Premium

The Selangor government provides 2 payment options for property owners.

Owners are given the choice to pay a premium of RM 1,000.00. However, if you opt for this option you’re not allowed to sell your property unless full payment of the premium is made upon transaction

The second option is to pay the full premium at the following rate:

1/4 * 1/100 * Market value of land * (Lease period – Remaining years of lease) x Land Area

For properties in Kuala Lumpur, the premium is calculated in accordance with the given formula:

1/4 * 1/99 * Market value of land * (Lease period – Remaining years of lease) * Land Area

The market value of your land is determined by the Land Office. You may also appoint a land valuer to work out the market value of your land.

You shall receive a new copy of the Land Title where its lease is extended. Remember to check that all information is correct!