Leasehold vs Freehold: Can You Actually Buy a Property with a 99-Year Lease?
Is "don't touch Leasehold" a truth or a prejudice? This explains the difference between the two title types, their impact on loans and resale, and when Leasehold is actually worth buying.
Published 4 July 2026 · by Lawrence Law
Let’s get the concepts clear first:
- Freehold: ownership has no time limit, and the land belongs to the owner permanently;
- Leasehold: the state government leases the land to you, commonly for 99 years, but also 60 or 30 years; before expiry you need to apply to renew and pay a premium.
The three reasons Leasehold gets disliked
- It gets “shorter” the longer you live there: the remaining term decreases year by year, which in theory affects value;
- One extra hurdle at resale: most Leasehold transactions require state government consent, adding 2–3 months more to the process than Freehold;
- Renewal costs money: when the term is too short, the renewal premium can be far from cheap.
But Leasehold isn’t off-limits — look at three conditions
1. The remaining term
Over 80 years remaining: very little impact; 60–80 years: acceptable, but reflect it when negotiating; under 60 years: be cautious for own stay, and even more cautious for investment.
2. Whether the price discount is adequate
A Leasehold in the same location should reasonably be cheaper than a Freehold. If the discount is reasonable, using the money saved to buy a better location or a larger unit is a perfectly rational choice.
3. Whether the location itself is strong enough
A Leasehold in a strong location beats a Freehold in a weak one — this has been proven countless times in the KL market. Location determines demand, demand determines value; the title type is only an adjustment to value, not the deciding factor.
Practical advice
- Find out the exact remaining term (check the title or ask the developer/lawyer), don’t just take “roughly ninety-something years”;
- For a high-rise project, what matters is the lease term of the whole project, not from when you move in;
- Factor in “the next buyer’s loan difficulty” when you sell in future: if the title has 55 years left when you sell, the person buying your property will find it hard to get a loan.
In one sentence: Freehold is a bonus, not a talisman; Leasehold is a discount, not poison. Whether a specific project is worth buying — send me the project name and I’ll take a look for you.
Frequently asked questions
When the lease expires, will the property be taken back?
Before the title expires you can apply to renew (extend the lease), which requires paying a premium to the state government, with the amount calculated by the state's formula. In practice, it's extremely rare for renewal to be refused on a large scale in residential areas, but the renewal cost and process should be factored in.
Is it harder to get a loan on a Leasehold property?
For Leasehold with an ample remaining term (generally over 60 years), the loan is not much different from Freehold; the shorter the remaining term, the more conservative the bank becomes on the loan tenure and margin it's willing to approve. Be especially careful buying a title with only 40–50 years left.
How much cheaper should a Leasehold be than a Freehold in the same location to be reasonable?
There's no fixed formula; a discount of 10%–20% is commonly seen in the market. Too small a discount and you lose the point of buying Leasehold; too large and you should ask why — there may be another problem.
Did this article help?
Everyone’s situation is different — just tell me yours and I’ll give you advice tailored to it.