Leasehold Property Renewal
Before applying for an extension, the lease must be firstly surrendered back to the state government. Then, both the property developer and leasehold land owner(s) have to submit the Permohonan Serahbalik dan Mohon Semula Tanah Untuk Tujuan Melanjutkan Tempoh Pajakan form, together will all the required photocopied documents such as land title, site plan, quit rent receipt, assessment receipt, etc. to the state's land office.
If the lease already expired, the form need to submit will bePermohonan Pemberimilikan Tanah (Application for Land Re-alienation) instead.
The land will then be checked by a settlement officer, who will then submit a report to exco for approval.
After approval, the land will need to go through re-alienation process by the land administrator.
If the re-alienation is approved, the land office will issue aNotice that Land Revenue is Due (Form 5A) to the property owner to pay a premium.
The premium charged is based on a formula factoring the following into calculation:
Premium rate (in percentage)
Market value per square feet
Lease tenure period
The land valuation is done by the Valuation and Property Services Department of Finance Ministry, and is based on the latest transaction values in the area. If the owner feel that the premium is too high, he has the option to appeal to the state government for a reduction. Upon payment of the premium, the land office will get the land title ready and inform the property owner when it is ready for collection. If the owner does not renew the land tenure and let it expire, the land will revert back to the state government, and be available to anyone to apply for its new ownership.