Freehold Properties

The differential between freehold and leasehold property, Owning a freehold property in Malaysia gives the owner full control over the land and property with NO time limitation on ownership

Ownership Right

• The freeholder has absolute ownership of the property and land , this means they own the land and any building’s on it for an indefinite period without the need to renew a lease.
• When you own a freehold property you own it outright as it provides long-term control over the property.
• If when you buy a freehold properties you own both the property and the land it stands on for as far as you want without having to renew any lease or worry about the property expiring.

Land Title

• Freehold freehold Land title issued by the state authorities, this title represents the owner’s full ownership rights over the land and property.
• The Title are registered with details of the ownership and any encumbrances (e.g. mortgage) on the property.

Leasehold Property

In Malaysia a leasehold property refers to land that is owned by the government, with the buyer acquiring the right to use or occupy the land for a specified period under a lease agreement.

Key Points

• A leasehold property is a type of property ownership where the buyer owns the right to live in or use the property for a set period of time but Not the land on which it stands.
• Leasehold property are essentially the right to occupy the property for a number of years, this could be as short as 30 years and as long as 99 years depending on the agreement make at the time of sale.

Lease Duration

• The lease duration is usually stated in the title deed and the leaseholder has the right to occupy and use the property for the duration of the lease period.
• Before the lease expires leaseholder can apply for lease renewal, this will incur additional payments and approval from local authorities.

Transfer and sale of Leasehold Property

• Leasehold properties in Malaysia can be buy and sell but the value of the property may decrease as the lease term shortens without renewal.
• If a leaseholder sell the property, the leasehold rights are transferred to the buyer and the new owner assumes the same lease terms

Renewing the lease

• The lease can be extended oor renewed when its near expiration, the extension process may involve payment of a premium and approval from the local authorities or government.
• The renewal terms can vary depending on local regulations.

In Malaysia land ownership and leasehold properties are governed by state authorities as land is under state jurisdiction. As such specific rules regarding leasehold properties an very between states. The process for renewing a leasehold , ground rent procedures can be differ from one state to another.