Premiums on renewal of leases 2

Have you checked the unexpired lease period of your property?
Do you know that a property with a shorter unexpired lease period normally fetches a lower value as banks do not normally offer financing.In addition, if you were to renew the lease the premium may become unaffordable (for many)!

Please refer to my earlier post on the same subject : Premiums on renewal of leases

Image source : http://www.dailymail.co.uk/news/article-1330976/Cheerleaders-bikinis-blamed-putting-team-Asian-Games.html

As I was reading the news in the Daily Express (one of my favourite online news portals) I found an interesting article related to the issue of land lease renewal premium which I would like to share with...

here it goes...

Kolombong landowners worried premium may be excessive: SAPP

Kota Kinabalu: Sabah Progressive Party (SAPP) said landowners at the Kolombong area are worried that the State Government will charge excessive premium for extension of their title deeds.

Former SAPP Treasurer-General, Datuk Wong Yit Ming, pointed out that the BN Government had promised to extend their title deeds and that the premium would be so affordable that every landowner will be able to pay for it.

According to the landowners most of the title leases in Kolombong area will expire in the next 10 years.

At the moment, most of the banks or financial institutions refuse to give loans to the landowners unless they can extend their title lease to another 30 years.

Wong also said that when some of the landowners approached the Natural Resource Office in the Chief Minister's Department to renew their lease titles for another 60 years, they were told that the premium required for the extension of lease title is very much higher than the amount promised.

"Some of the landowners cannot even afford to pay for the premium requirement.

They all feel cheated and upset that the BN Government cannot fulfil their promises.

"SAPP calls on the State Government to speed up the renewal of Kolombong land titles seriously and the State Government to be fair in charging premium in order to help the landowners extend their title deeds," he said.