Renovating Before or After Your Lease Renewal? Why It’s Smarter to Invest After Securing Your Lease

Renovating your home is one of the most rewarding parts of property ownership—whether it's upgrading your kitchen, adding an extra room, or increasing your home’s value. But if your property sits on leasehold land, there's one critical question you need to ask first:

“Should I renovate now, or wait until my lease is renewed?"

Many Malaysian homeowners aren’t aware that investing in renovations before securing their lease renewal can lead to financial risks. In this article, we’ll explore why it’s wiser to wait, and how you can make the most of your renovation investment—after your lease is locked in.

🔍 Why Lease Term Matters

As your lease shortens, it can significantly impact property value, approval processes, financing options, and your renovation plans:

Low Return on Investment (ROI): Houses with shorter leases don’t gain much value from renovations. Buyers tend to avoid leaseholds nearing expiry—even if immaculately renovated—because value declines as the lease term shortens after about 30–40 years.
Financing Limitati ons: Banks are hesitant to finance leasehold properties with less than around 40–60 years remaining; a margin of financing may drop, or loans may be outright refused.
Wasted Investment: If your lease renewal is rejected (e.g., due to pending development), or delayed, renovation spending may yield little to no value—or even hinder resale .

🛡️ Benefits of Renovating After Lease Renewal

Waiting until after renewal ensures your renovation becomes a true investment with long-term rewards:

Real Property Value Growth: With a renewed lease, renovations translate into meaningful value, making your property more attractive to buyers and mortgage providers.
Peace of Mind: You mitigate the risk of losing tenure or having plans disrupted due to expiring lease terms.
Easier Loan Approvals: A longer lease reassures banks, often unlocking better loan terms and financing options.
Stronger Negotiation Power: When selling or renting, recent renovations on a property with a long lease create much more market appeal.

🔍 When Should You Start the Lease Renewal Process?

If you have a leasehold property:

✅ Check your land title.
✅ Don’t wait too long—costs go up, and your negotiating power goes down.
✅ Engage a professional (like us!) to help you deal with the land office, valuation, and document preparation.

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.