Amirudin: Many commercial and industrial property owners are unable to extend their lease.
Selangor government is looking at ways to make extending leasehold land more affordable, says Mentri Besar Datuk Seri Amirudin Shari.
He noted that there were many cases where property owners, especially for commercial properties, were unable to extend the lease.
“The premium is fixed based on current market value.
“Some areas, such as Petaling, have seen a huge increase in value.
“The state is aware of the situation and is coming up with a formula.
“Whatever policy that is being put in place will set a precedent, so we have to be careful,” he said when replying to Datuk Johan Abd Aziz (BN-Dusun Tua) on extension of leasehold land after the tenure had ended.
Amirudin highlighted that there were policies in place for residential property owners to make extensions of their lease more affordable, namely minimal fees and big discounts on the land premium.
“We have to come up with a policy for commercial and industrial properties,” he said at the Selangor State Assembly.
Amirudin said the state would consider an application for extension with under 30 years left on the lease.
He advised property owners to start the leasehold extension process early, as it will take time.
“Do not wait until the end of the period,” he said.
Responding to an additional question by Mohd Shafie Ngah (PN-Sungai Ramal) on whether the state would consider applications to convert leasehold land to freehold, Amirudin said Selangor would lean towards extending the lease instead.
If the state needed to acquire any land, the payout would be much higher for freehold compared to leasehold land, he said.
