Most residents of Petaling Jaya Old Town whose property lease is expiring in three to 15 years had a shock when they applied for an extension. The premium now costs them between RM80,000 and RM100,000, compared with RM40,000 four years ago.
Residents living in Section 1, 2, 3, and 4 were also perplexed as to why the premium varied even though the size of the houses and the duration of lease applied for were the same.
They were even more confused after learning about a statement made by news portal The Nut Graph columnist Mak Khuin Weng, who is also a Petaling Jaya city councillor, that their leasehold titles might be invalid.
The 50-year-old houses are in bad shape but the residents cannot renovate them while the status of their title is left hanging.
Section 1 resident Goh Hock Leng, 55, said his house was on the verge of collapse and needed to be rebuilt.
“I have applied for a bank loan but they cannot process it because my old title is still with the District Office when I submitted my application in 2009. I have to pay RM81,000 to renew the title. How can a retiree like me afford it,” he asked.
“My neighbours paid only RM40,000 four years ago,” he said, adding that he visited the District Office to appeal and for an explanation but to no avail.
“Some said we should have been given freehold titles, so who do we listen to now? Where do we go from here?” he asked.
Section 4 resident Hoo Won Haw’s lease will expire in four years. To renew it, he has to pay RM100,679.
“Of course I will not pay. My neighbour only paid half the price. Even that I cannot afford because I am just a hawker,” said the 63-year-old.
Section 1 Rukun Tetangga chairman Kok Kuan Yong said residents were waiting anxiously because some assemblymen told them that “there would be good news at the end of this year”.
“We are shocked by the new premium quoted. Many residents also visited the MPs and assemblymen but we have yet to receive a definite answer,” he said.
He added that the area’s elected representatives had promised to review and reduce the premium during election campaigning.
“We are disappointed that not only had they not walked the talk, they even doubled the premium amount,” he said.
Section 3 Rukun Tetangga chairman Shamsuddin Hassan questioned why house owners in Section 3 had to fork out RM12.50 per sq ft while residents in Sungai Way, Sungai Buloh and Damansara new villages had their lease extended 99 years for only RM2.50 per sq ft.
He also did not understand why the premium varied in Section 1, 2, 3 and 4 while the location and floor area were almost the same.
He added that he had tried to seek an answer through many departments and elected representatives but ended up in disappointment.
“No one could explain the calculations convincingly and I was told that the discretion in the premium lies with the mentri besar,” he said.
“We need an answer from the mentri besar himself. Publish the rates, show us the calculations and have a meeting with the residents,” he said.
“We have been staying in Petaling Jaya the longest and we inherited the property from our fathers, but sadly, it now costs us a bomb with many still questioning whether we should pay the premium,” he said.
He added that some residents were forced to abandon the houses because they could neither sell nor renovate the properties.
He commented that Mak’s statement had “created confusion” among the residents.
Left in the lurch: The tranquility of Petaling Jaya Old Town belies the fact that residents are anxious about their leasehold titles that are expiring in three to 15 years. “Residents now think that they can get freehold titles, while those who had paid the premium for lease extension feel that they have been short-changed,” he said.
Selangor MCA public complaints bureau deputy chairman Kelvin Chong said the bureau had been inundated with queries after residents from PJ Old Town found out about the huge sum they had to pay to renew their lease.
“The huge difference in premium over just a few years surprised us. We hope the Selangor government can explain how this is calculated and that the premium be brought down as promised during the election campaigning,” he said.
He added that those who had extended their lease complained of unfairness after learning about Mak’s statement.
“If you say the leasehold titles are invalid due to some historical reasons, what about those who paid the sum to renew it?
“And if residents can now get freehold titles, are other new villages in the country also entitled?” he asked.
