Extending a Leasehold Land Title in Malaysia: Section 90A, Premium and Process

In short: most land in Peninsular Malaysia is held either in perpetuity (freehold) or for a fixed term (leasehold), usually up to 99 years. When the term ends, the land reverts to the State. Since 1 January 2017, owners can apply to extend the lease under section 90A of the National Land Code, but only before it expires, and approval and the premium are decided by each State Authority.

1. Why the remaining lease matters

Your title shows the expiry date of the lease. Under section 46(1)(a) of the National Land Code, alienated land reverts to and vests in the State Authority on the expiry of the term stated in the title. A short remaining lease can also affect resale and financing, because buyers and financiers look at how many years are left. Check the expiry date with a land search before you buy, and plan ahead if you already own leasehold land.

2. The legal basis: section 90A

Section 90A was added to the National Land Code by the National Land Code (Amendment) Act 2016 (Act A1516) and came into force on 1 January 2017. The key points are:

• The registered proprietor applies to the State Authority through the Land Administrator.
• The application must be made before the term in the title expires.
• Under section 76(a), alienation for a term cannot exceed 99 years, so the extension plus the remaining term cannot exceed 99 years.
• Every person with a registered interest, such as a chargee bank, lessee or lien holder, must consent, unless the State Authority dispenses with it.
• For strata schemes, the management corporation applies on the authority of a unanimous resolution, and the extension then applies to all the strata titles.

3. The process step by step

The Federal Director General of Lands and Mines (JKPTG) Circular No. 2/2024 sets out the usual procedure:

• Submit the application with the fee set in the state land rules, the written consents and usually the issue document of title.
• The Land Administrator endorses a note of the application on the register document of title.
• A settlement officer prepares a land report (location, current use, any breach of conditions), and the Land Administrator refers the land to the Valuation and Property Services Department (JPPH) for its market value, used to set the premium.
• The State Authority approves or rejects at its discretion.
• If approved, you receive a Form 5A notice to pay the premium and other charges. If you do not pay within the time given, the approval lapses.
• After payment, a memorial of the extended term is endorsed on the title.

4. How much is the premium?

There is no single national rate. Each state sets its own premium and fees in its state land rules. Kuala Lumpur is a published example: under the Federal Territory of Kuala Lumpur Land (Amendment) Rules 2023, the premium is a fraction of the land value × 1/99 × (new term − remaining term). The fraction is 1/32 for agricultural land, 1/16 for residential, 1/8 for commercial and industrial, and 3/32 for mixed development. The Form 5A sum must be paid within three months.

For example, a residential lot in Kuala Lumpur with a land value of RM990,000 and 40 years left, extended to a new term of 99 years, works out to 1/16 × RM990,000 × 1/99 × (99 − 40) = RM36,875. This is only an illustration: the actual land value comes from the valuation, and other states use different formulas and limits. For example, Terengganu's form states an application fee of RM200 per title and a combined maximum of 60 years for industrial land.

5. What if the lease has already expired?

Section 90A only covers applications made before expiry. JKPTG's circular says that if the application was submitted in time but approval only came after the expiry date, the State Authority may approve it with backdated effect, and the Form 5A will also cover a payment in place of the uncollected quit rent. If no application was made in time, the land has reverted to the State, and the former owner would have to apply for fresh alienation. Do not wait until the last few years.

6. Practical tips for owners and buyers

• Check the expiry date and any registered charge on the title before you buy leasehold land.
• Ask your bank for its written consent early if the land is charged.
• Strata owners should raise the extension at a general meeting, because a unanimous resolution is needed.
• Ask your land office for the current form, fee and premium rate in your state.
• For redevelopment, developers sometimes use surrender and re-alienation under Part Seven A (sections 204A–204H), which is a separate application.

This is a general guide, not legal advice. Rules and rates differ by state, so confirm with the Land Office or PTG and your lawyer.

Thinking of buying or selling leasehold land? Chat with PropertyMsia on WhatsApp and we will help you check the title and the remaining lease.