How has the Selangor government responded to leasehold conversion requests since 2010?

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Selangor Government's Response to Leasehold Conversion Requests Since 2010

Since 2010, leasehold property owners in Petaling Jaya have been seeking enhanced lease extension terms and the possibility of converting their properties to freehold status. While residents have actively engaged the Selangor government on these matters, their requests have not yielded the desired outcomes, leading to ongoing concerns about property value and financial burdens, particularly for senior citizens.
Lease Renewal Options and Associated Costs

The Selangor government offers two primary options for leasehold property owners. The first allows for a lease extension up to 99 years upon payment of a nominal fee of RM5,000, but this renewal restricts property transfer to a spouse or biological/adopted children. The second option, required for selling the property, necessitates a full lease renewal for 99 years with a premium calculated based on land value, lease duration, and area, though a 30 per cent discount is available if settled within six months of application.
Residents' Concerns Regarding Premiums and Marketability

Many residents have voiced dissatisfaction with the current arrangements, particularly the high premiums associated with lease renewal. These costs are often prohibitive for senior citizens and those on limited incomes, forcing them to deplete retirement savings or sell properties at reduced prices. Furthermore, the remaining lease tenure, often less than 25 years, deters banks from approving loans, thereby shrinking the pool of potential buyers and further depressing property values. An additional bureaucratic hurdle is the "restriction of interest" clause, introduced a decade ago, which requires state authority permission for selling, pledging, or leasing leasehold properties, thereby prolonging the sale process and potentially lowering property values.
Assemblyman's Defence of Current Policies and Process

Bukit Gasing assemblyman Rajiv Rishyakaran has stated that the Selangor government has not rejected any lease renewal applications that meet the required criteria. He maintains that property owners can renew their leases at any time, and there is no record of rejections for complete and compliant applications, thus assuring residents of their security of tenure. However, he acknowledged that the approval process for lease renewals might extend up to two years due to a significant increase in the volume of applications submitted to the Petaling District and Land Office.
Consideration of Alternative Conversion Models

In response to the ongoing leasehold dilemma, some residents and community representatives have advocated for the Selangor government to emulate the model adopted by Negeri Sembilan. This state has allowed for the conversion of leasehold residential properties to freehold, a policy that fulfilled an election pledge made in 2018. Regarding the potential adoption of such a model in Selangor, Rajiv Rishyakaran indicated that this matter would need to be formally referred to the office of the Menteri Besar for consideration.

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How has the Selangor government responded to leasehold conversion requests since 2010?

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