PETALING JAYA (Dec 19): The high premium has deterred many residents of Selangor from applying for their land titles or renewing their leasehold. This has prompted the state government to introduce the Private Residential Ownership Scheme as part of the Selangor People's Agenda to increase the quality of life for those living in Selangor.
This scheme will give ownership to those who have been squatting on government land for a long period. It also allows leasehold landowners to extend their leases at an affordable premium.
The scheme, which took effect on June 1 this year, in many ways solves the issue of renewing leases that has been plaguing owners for years due to the high premium involved.
In this new scheme, the holder of a leasehold has the option of paying the premium based on the size of the property or pay only a nominal sum of RM1,000 when renewing the lease.
The option of paying a nominal RM1,000 is available to individual landowners and for private residential properties only. However, the full premium will be calculated when the owner decides to sell the property.
According to a copy of the booklet explaining the scheme, if an owner chooses to make the full premium payment, he would be entitled to a 30% discount.
The premium is calculated based on one-quarter of the land's current market value, divided by 100 and multiplied by the number of years renewed.
For the renewal of a 99-year lease, the owner has to pay around a quarter of the property's current value.
In order to apply for the renewal, one has to surrender the land title to the land office and once approved, a Form 5A will be issued to the owner.
The landowner will then have six months to make payment, whether it's the nominal RM1,000 sum or the full premium with 30% discount.
Under this scheme, leasehold landowners can extend their lease from 60 years to 99 years.
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