IPOH: Oct 9, 2008 By CLARA CHOOI
The Perak government has announced an 80% discount on land premium for those keen to convert their leasehold titles to freehold titles in all planned and new villages in the state.
In making the much-awaited announcement Thursday, senior state exco Datuk Ngeh Koo Ham said this meant that applicants only needed to pay 20% of the appreciated value of the land.
“We have finally developed the formula for the premium after the Valuation Department completed its assessment of the appreciated land value after it is converted from leasehold to freehold.
”The appreciated value was estimated based on the size and location of the land and it differs according to the remaining number of years on the land lease for each piece of land,” he said in a press conference at the State Secretariat here.
Ngeh added that the formula was for all 110,000 applicable titles in the state’s planned and new villages, which totalled to an appreciation value of RM1.5bil.
This meant that the people would only pay 20% of the RM1.5bil for the premium, amounting to RM300mil, he said.
”Of course, this is an option and is not compulsory. If there are those who feel they cannot afford to make the conversion now, they do not need to do so.
”However, we are sure that many people would not want to pass up this opportunity, which ultimately empowers them.
”At least by holding freehold titles, it would be easier for them to take bank loans to improve their homes,” he said.
Ngeh added that those interested in making the conversion could do so in two weeks time as the formula schedule has to be disseminated to all district land and mines offices statewide.
”Once they apply, it should take between one and two weeks for the freehold titles to be issued,” he said.
Ngeh added that those who paid for the extension of their land leases after the March 8 elections at a scale higher than the new formula stipulated would automatically be qualified to receive freehold titles without being charged further premium.
Citing an example of Kampung Baru Simee here, Ngeh said that if a 300sq metre piece of land still had a remaining land lease of more than 90 years, an applicant needed only to pay RM780 for the premium.
This amount, he said, was 20% of the appreciated value of the said land, which was RM3,900.