What is Freehold?
Freehold, or in Malay "Hak milik kekal," refers to a type of land ownership where if you purchase the land, you will have permanent ownership of it. For houses that have freehold land ownership, it means the house is built on land with permanent ownership. If you buy a freehold property, you will own both the house and the land indefinitely. This information can be verified in the land or property title deed.
However, many people are unaware that freehold land and houses can also be purchased or forcibly acquired by the government. Property owners can be forced to sell their houses or land to the government at market prices without any compensation. This is also known as "compulsory acquisition" or "forced acquisition." The government has the authority to take over land and houses for public projects and transportation development purposes, such as road construction, light rail transit (LRT), and so on.
What is Leasehold?
Leasehold refers to a lease or tenancy. Land with leasehold status means that the land is leased or rented by the government for a specific period, usually ranging from a minimum of 30 years to a maximum of 99 years. After the lease term of 99 years, the land must be returned to the government by the owner. Similarly, houses with leasehold status mean that the houses are built on land that is leased or rented by the government. The land or property owner will not receive any compensation when the lease term expires. Information about the start and duration of the lease term can be found in the land or property title deed. Typically, the title deed will indicate the start and duration of the lease. The calculation of the lease expiration date should be done by the individual.