KUALA TERENGGANU: Land and property owners in the state who have been lamenting about renewing leases when it expires after 60 years can now be at ease following a move by the state government to standardise the renewal period up to 99 years.
This move will enable land and property owners to secure a longer mortgage period for bank loans and render the property much more attractive to potential buyers because of the longer lease period.
The decision was made during a recent state executive council meeting and the new conditions will take effect immediately.
Menteri Besar Datuk Seri Ahmad Razif Abdul Rahman said the government listened to the grouses aired by land and property owners who found the 60-year leases, impractical and inconvenient. It was also difficult for them to secure loans from banks when the lease expires after 60 years.
“From now on, they can renew their leases for 99 years. We have standardise the terms to enable them to get bank loans. Banks will be more willing to lend them money if the period of leases is longer,” he said.
He also said that the government was now focusing on building more affordable houses throughout the state following strong demand for such houses.
“So far we have built more than 11,000 units but we hope to build more soon. We are also trying to make it easier for buyers to secure loans, including introducing interest free schemes, for those who are in the lower and middle income bracket,” he added.
Razif said more incentives for house buyers would be announced in the 2018 State Budget when it was tabled in the state assembly sitting in December.
Land, property, 60 years, lease, 99 years, Terengganu, Menteri Besar, Ahmad Razif Abdul Rahman