If you own a leasehold property in Malaysia, understanding the renewal costs is crucial—especially as your lease approaches expiry. The main cost involved is called a premium, which you’ll need to pay to extend your lease. While there’s no one-size-fits-all fee across Malaysia, each state provides its own calculation method or fixed charges. Here's a detailed breakdown of the calculation by state:
Kuala Lumpur
In Kuala Lumpur, the lease renewal premium is currently calculated based on the following formula:
- (1/4) x (Market Value of Land) x (1/99) x(Renewed Lease Period - Years Remaining on the Lease) x Land Area.
This means your premium will depend heavily on your property’s current market value and the number of years left on your lease.
Selangor
In Selangor, homeowners currently have two options for lease renewal:
Option 1: Full Premium Payment (with Rebate)
- (1/4) x (1/100) x (Market Value of Land) x (Renewed Lease Period - Years Remaining on the Lease) x Land Area
- There is currently an ongoing rebate of 30% of the premiums. (Source: The Star)
Option 2. Minimal Payment to Extend Lease (Without Selling Your Property)
- You can pay a nominal fee (a few thousand ringgit) to keep the property in your name.
- However, if you plan to sell the property, the full premium from Option 1 will still need to be paid.
Sarawak
Sarawak currently uses a fixed-fee system depending on your property type, for a lease renewal of 60 years:
- Terrace: RM1,000
- Semi Detached: RM 3,000
- Bungalow: RM 5,000
Other Charges
There are various other costs that will be incurred during the process of your application for a lease renewal, such as:
- Application fees
- Performing a land search
- Purchase of forms
- Premium (refer to calculations above)
- Specific fees and settlements which vary by state
Suggested: Don’t wait until your lease nears expiry. Early renewal can save you money, especially with ongoing rebates.
Contact us today to get a personalised estimate and guidance based on your property and location!
Disclaimer: The information above is based on current data and regulations as of the date of publication. Leasehold property laws, procedures, and policies may change over time.