1 Answer

askguru expert
Hi Han,

Once you've obtained a loan to purchase a leasehold property, you pay the monthly installment to the financial institution you borrowed from. This is the same for freehold properties.

The difference is that a leasehold property is built on government-owned land, which means the property can only belong to you for a limited period of time. When you choose a leasehold unit, what you're essentially purchasing is the right to live temporarily on a piece of land. The tenure of ownership typically runs from 30 to 99 years, depending on the land it exists on, and its governmental restrictions. So if there’s a total of 30 years left on your lease, you can renew it for 69 years. The total amount to pay depends on whether the property is residential, commercial, agricultural, or another type entirely.

You may refer to these for more info on leasehold properties:
- https://www.propertyguru.com.my/property-guides/freehold-and-leasehold-titles-734
- https://www.propertyguru.com.my/property-guides/leasehold-property-lease-renewal-and-reselling-lease-34288

Leasehold property, just like freehold property, has quit rent and assessment tax. More info here: https://www.propertyguru.com.my/property-guides/guide-to-quit-rent-parcel-rent-assessment-rates-15151

Hope this clarifies.

Best regards,
Team PropertyGuru Read More