Leasehold

In simple terms, Leasehold which means that the land belongs to the owner but the owner is leasing it for period time subject to state approval.

Usually period for leasing in Malaysia law will be 99 years, which is for new property.

Meanwhile, for second hand leasehold property’s leasing period will be less than 99 years depends on the year of property completed after you buy from the previous owner. 

When the leasing period come to ends, ownership have to returns to the freeholder.

In that case, you also can extend the lease period from landlord with government and there will be a charges fee for the extend lease based on the market value of the property and land at the time.

However, for the leasehold property, you may notice that the price is lower than a freehold property. As developers understand the competition in the property market, they tend to compensate for a leasehold owner.

For some property value of leasehold do gain more value than freehold property once during early years, but beyond 20 to 30 years, the value of leasehold properties stagnate until the expiry of the lease.