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Yes, there are differences between the two, but does it even matter? How can it affect your purchasing decision? What's your 2 cents over this matter?


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To me it does not matter if you plan to invest and plan to sell it in 5 to 10 years... unless it is 99 years leasehold... else it does not matter much.

I have seen 991 years leasehold project in Johor which is essentially freehold to me.

Referring 99 years leasehold. If the remainder lease years is almost similar to your mortgage tenure years, the bank may be reluctant to give out the loan.

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@domng why is the bank reluctant? and what are the consequences if that person only sell the unit after 20 years for example?

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I believe if the property lease only left 20 years and the owner take the loan for 20 years or more... The future lease of the unit is not secured. Hence if really the bank auction out the unit also not worth much... Therefore the bank is reluctant because it does not make business sense to them?

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@domng agreed, bank will value the deal before they giving out loan.

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@nisyaaziz88 Depends on your budget/finance. Freehold is more expensive, leasehold normally cheaper. If you intend to sell, bare in mind, if leasehold, prosedure more complicated and spends more time for consent. 

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Speaking of leasehold sales, does it matter is the property is strata title or individual title. Which is easier to sell procedure wise?

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Procedure is more and more tedious is selling leasehold is because many of the leasehold now are using the Master title as their strata title and takes time to convert it to be individual title. Besides that, most of the leasehold development now is Commercial title and not residential title.

Under the commercial title, all the utilities, mgmt and whatsoever are more exp as it follows the commercial rate and under the commercial title, Many clause are not protected for buyer as what meant for freehold types of protection. Just my opinion

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Thanks for your detailed explanation and elaboration. 

I understand there is an association called HBA to protect the home buyer rights. I am not sure if there is an equivalent association for commercial properties?

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@sultana thanks for sharing