Process of renewing leasehold
1 - Extension of leases is governed by Section 197 of the National Land Code 1965.
2 - Leasehold owner have to fill in a form Permohonan Serahbalik dan Mohon Semula Tanah Untuk Tujuan Melanjutkan Tempoh Pajakan.
3 -With proper documents included i.e quit rent receipts, copies and site plans and such, a settlement officer (S.O) would prepare a report incorporated in a draft paper for approval of the state exco. This may take up to 3 months or more upon the discretion of the state government.
4 - Once approval has been given by the exco, the owner would be notified and would have to submit Form 12A which entails giving back the property to the land administrator for re-
alienation.
5 - If the application is approved, the land office will issue ‘Notice that Land Revenue is Due’ Form 5A to the property owner giving them 3 months to settle the premium (lump sump) from the
issuance date.
6 - If the owner fails to pay the premium, and the lease expires, the property automatically reverts back to the state government and this allows anyone to apply for the land.
7 - Molly is advised to start reapplying for extension at least two (2) to three years (3) years before the lease expires as the whole re-alienating process may take up to at least one year