How much do we need to pay to extend a leasehold property?

How much do we need to pay to extend a leasehold property?

I have no special preference for freehold property versus leasehold property. Many years ago, my cousin sister asked me if she should proceed with a leasehold property. I told her this story.

When you first bought the new property with a leasehold status, it may start with 99 years. Give or take maybe 96 years. You are 30 years old. 30 years later, when you are 60 years old, the leasehold is left with 69 years.

At the time, your son / daughter may be 30 years old. When you reach 90 years old, your son / daughter is 60 years old and your grandson / granddaughter is now 30 years old. The leasehold is left with 39 years.

When the leasehold comes to the final few years, you have left the world. Your son is 90, your grandson is 60 and your great-grandson is 30. I would think by then you have enough savings to renew the lease? We assume NO ONE thought of selling the property…

By the way, if the intention is to rent the property out to potential tenants who will continue to pay you rental to cover your mortgage, then the rental is the same whether it’s leasehold or freehold…

Secondly, whether property price appreciates or not does not depend on leasehold versus freehold alone. It may also depend on the location, the potential growth, the quality, the concept and many more reasons too.

Anyway, coming back to the question of how much do we pay to extend a leasehold property? Here’s a good reference.

Very good and comprehensive article in

How much does it cost to extend the lease?

Land laws in Malaysia are subject to the jurisdiction of various State Authorities, hence they vary from state to state.


In Selangor, the premium formula for the extension of leasehold land is found in the Selangor Land Rules 2003 & Selangor Quarry Rules 2003.  

It should be noted that leasehold property owners in Selangor have some rebates when it comes to renewing their lease.

  1. Leasehold property owners of 60-year-old leases will be able to convert their leases to 99 years.
  2. Under the Private Residential Ownership Scheme Pay, owners only need to pay RM1000 with the condition that the owner does not sell the property to others. Should the owner decide to sell off the property down the road, he will have to fork out the monies for the balance of the premium. However, owners are allowed to transfer the property to family members. 

You might be wondering how can option no.2 be so affordable. Ass explained by the Selangor Menteri Besar in 2018 – With land prices escalating yearly, the Private Residential Ownership scheme offers a financial cushion and assurance that the homeowner or the next generation will not be kicked out of their homes due to a lack of funds for premium renewal. Land renewal premiums for key locations in the Klang Valley can easily cost upwards of RM150,00.


Land held under Native Titles does not require renewal as these are held in perpetuity. Meanwhile, non-native leasehold land will hold a Country Land and these typically have a 99-year lease (implemented in the 1990s). In 2020, the Sabah state government announced that they will restore 5,878 country lease titles from a 99-year lease to the original 999-year lease, to the unanimous approval of landowners and industry stakeholders.

Those looking to restore their 99-year lease tenure can register themselves as a user in the Land Development Portal HERE.

In the menu, select “Apply to restore 999 tenure” and fill in your land title number. This will generate a form that needs to be signed and submitted to Lands and Surveys Department Headquarters or any District Land Office.


A flat-rate premium is applied in Sarawak, as shown below:

Land UseCategoryRates (RM)
ResidentialTerrace Home1,000 per unit
Semi-Detached Home3,000 per unit
Detached Home6,000 per unit

The owner will have to pay an additional 30% of the total premium if the lease extension is for a period of 99 years instead of 60 years. But, property owners in this state have an advantage – the value of present interest of land (the balance of the lease term) is not considered important. Hence, owners can renew their lease only when nearing expiry.

Sarawakians can now apply for their lease extension online via eRLL Services. Please read here for the very good and comprehensive article in

My experience with leasehold property

My leasehold property in Kelana Jaya (my 3rd home) appreciated from RM183,000 which I bought to RM460,000 which I sold after 6 years. Buyers will also have to consider the location, developer reputation/building workmanship quality, property concept as well as the growth potential of that locality potential.

Thus far, I move every 4 years. First 2 home sweet homes were freehold properties. 3rd property as above is leasehold. 4th property which I am currently staying is also leasehold. When I move next year to my new home sweet home, that is also a leasehold property too. I do not think I will keep the property until such a long time.

By the time I sell, it should have appreciated enough and perhaps I can then move again. 🙂 If I do not move, I could not take advantage of the capital appreciation mah. Happy deciding and by the way, I buy both. So, this is not a recommendation to buy freehold or leasehold but just to tell you my experience and share how to calculate the amount to pay for leasehold extension.

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