On 18th July 2013, we received 1 question from Mr. Michael Hiew:-
Does Sabah & Sarawak have the same options to extend leasehold lands as in Selangor?
- No they do not. In Malaysia, land laws are subject to the jurisdiction of different State Authorities so land laws usually differ according to States. This is entrenched in the Federal Constitution.
- The residents of Selangor need not pay the full premium, paying only a flat rate of RM1000 on the condition that they do not sell or transfer their title.
- In Sabah, the premium is a cheaper reflection of the full premium in Selangor. A smaller percentage of the market value is used in determining the premium and the number of years of renewal that has to be paid for is discounted by the number of years you have left before expiry. Further elaboration is as demonstrated below. Owners are free to sell or transfer the title of their land.
- In Sarawak, a flat rate premium is imposed. The value differs according to the type of property held. The owner will have to pay an additional 30% of the total value of the premium if the extension of the lease is for a period of 99 years as opposed to 60 years. Owners are free to sell or transfer the title of their land.
- Private Residential Ownership Scheme
- RM 1000 to extend their land lease to 99 years instead of paying a hefty premium
- Residential owners of 60 year leases will also benefit as they are able to convert to 99 year leases under this scheme
- This scheme is subject to the conditions that the owner continues to use the premises as his/her main area of residence
- And does not sell/transfer the title of the property
- Individuals who gain title of the property through court orders through inheritance are eligible for the benefits of the private residential ownership scheme.
- This is subject to the transfer being a one – time transfer
- Upon the sale or transfer of the land at a later date, the balance of the premium will have to be paid up
- Current Premium Calculations:
- 0.25 x Market Value / 100 x No. of years renewed
- 0.25 x (Size of land in sq. feet x price per sq. feet) / 100 x 99years
- Individuals are entitled to a 30% discount off the full premium price if they were to pay the full premium price within 6 months of the date of the issued notice
- Source of Authority:
- Land and Survey Department Sarawak
- Process for Renewal of Land Leases (RLL):
- Made before the expiry of the lease
- Using Form RLL 1/2010 from any Divisional Office of Land and Survey Department
- Subject to:
- Land not required for Governmental development purposes
- Utilization of land does not conflict with conditions of title
- May be renewed for 60 years or 99 years
- Lands for residential purposes, granted a 99 year lease is subject to a 30% premium
- Rates of Premium for Lands with Residential Purposes (W.E.F. 14.05.2010)
- Value of the balance of the term interest in land is not considered. If and when renewed for whichever term, you have the full benefit of 60/99 years that does not include the remaining term you have.
- Therefore, it is advisable to renew your lease only when nearing expiry
- Additional Information:
- No processing fee is imposed upon submission of application
- The Land and Survey Department Sarawak takes two (2) weeks to review an application
- Upon approval, the landowner is notified and premium has to be paid
- Landowner will then receive the renewed land title within three (3) months
- Additional Charges:
- RM10 for title registration (Stated differently on the website)
- RM30 preparation fee (No mention on the website)
- Verbal Confirmation as of 19.07.13
|Land Use||Category||Rates (RM)|
|Residential||Terrace||1,000 per unit|
|Semi-Detached||3,000 per unit|
|Detached||6,000 per unit|
- Titles are divided into Native Title and Country Land Title
- Land held under Native Title is held in perpetuity so there is no need for renewal.
- This title is subject to the holder being a Native Sabahan or a holder of a Sijil Anak Negeri.
- Most individuals hold a Country Land Title to their property due to their non-native status.
- Those looking to renew their residential lease are advised to submit their applications 6 – 12 years before the end of their leases as the application process is expected to take 5 – 6 years.
- Applicants looking to extend their residential leases may extend it for 99 years.
- Below is the applicable formula for calculating the premium for renewing land for residential purposes:
- 0.1 x (Size of land in square feet x Market value per square feet) / 100 x (Term of new lease – Balance term of existing lease)