Apply for conversion after June 15
03/06/2008 The Star

RESIDENTIAL leasehold landowners in Penang can start applying for their property to be converted to freehold status after June 15.

Under a new land policy announced by the Penang Government last week, the state’s 30-year, 60-year or 99-year residential leasehold land can be converted to freehold land on a case-by-case basis.

The move will benefit thousands of leasehold property owners, including those staying on Penang Development Corporation flats in densely populated areas such as Gat Lebuh Macallum and Bayan Baru.

However, leaseholders of state land must first “return” their property and pay a land premium before the land can be converted to freehold status.

The land would then be realienated to the homeowners with a fresh title.

According to Chief Minister Lim Guan Eng, the new land policy would ensure that “land be-longing to the people would go back to the people”. The land-owner, he said, would be allowed to pay the premium in instalments if the amount was too high.

“Normally, the Land Office can allow for the applicant to pay a premium through three or four instalments,” he said.

The land premium price would be calculated based on the difference between the freehold land price (to be determined by the state valuation department) and the property’s current market price.

Those allowed to convert residential leasehold land to freehold would not be allowed to sell the land “immediately”.

The state is also looking at allowing the tenure of lease- hold commercial and industrial land owned by the state government to be extended to 99 years.

All applications must be made by the registered landowners. All necessary forms would be available by June 15.

The policy however does not apply to temporary occupation licence (TOL) holders.