Estimate Your Lease Extension Premium
Estimate an illustrative premium for extending a 60-year industrial land lease in Penang.
This calculator provides an illustrative estimate based on projected land value, the value difference between the remaining lease and a fresh 60-year lease, and the applicable PTG premium-rate category.
Use it for preliminary planning only. Actual eligibility, valuation, premium, discount, tenure and approval are determined by the relevant authorities and may differ from this estimate.
How to Use This Calculator
- Enter the Land Area and choose the unit (acre, sq ft or sq m).
- Enter the Current 60-year Lease Land Value Proxy (RM/psf). This is a modelling input, not a JPPH valuation.
- Enter Years Until Extension. The calculator automatically derives the remaining lease years.
- Select the Applicant / Status that best matches your situation.
- Select whether the applicant is a foreign company. The calculator applies an illustrative +10 percentage-point adjustment where selected; the actual industrial treatment must be confirmed with PTG.
- The 2.0% land-value growth and 5.0% tenure discount rate are PI modelling assumptions. Leave them at the displayed assumptions, or change them only if you deliberately want to test another assumption.
- All calculated result fields are locked and update automatically. Use Print / Save PDF to save the calculator inputs and results; the explanatory notes below the calculator are intentionally excluded from the printout.
How the Estimate Is Calculated
The calculator works in five steps:
- Project the current 60-year lease land-value proxy forward to the year when the extension is assumed to be applied for, using the land-value growth assumption.
- Estimate the value of the shorter remaining lease relative to a fresh 60-year lease using the tenure discount rate. The remaining term is calculated as 60 years minus the Years Until Extension input.
- Calculate the value differential between the projected fresh 60-year lease value and the estimated value of the remaining lease. That differential is multiplied by the land area to produce the gross premium base.
- Apply the applicable premium-rate category based on the selected Applicant / Status and the automatically derived lease-timing category. Where Foreign Applicant / Company = Yes, the calculator applies an illustrative +10 percentage-point adjustment. The displayed payable rate is not modelled above 100% of the gross premium base.
- Estimate the lease-extension premium as Gross Premium Base × Illustrative Net Premium Rate Payable, and show the equivalent premium per sq ft.
Tenure Discount Rate — in simple terms
This is an assumption used to reflect that lease years further in the future contribute less to today’s value than lease years closer to today.
A higher tenure discount rate gives less value to the later years of a lease. This makes a shorter remaining lease look less valuable compared with a fresh 60-year lease, which can increase the estimated value difference used in the premium calculation. A lower rate has the opposite effect.
This is not an interest rate or an official PTG premium rate. It is only a modelling assumption used by this calculator.
Remaining Lease Value Relativity vs Fresh 60-year Lease — in simple terms
This is a percentage comparison between the estimated value of the lease with its remaining years and the value of a fresh 60-year lease, using the same land-value basis.
For example, if the calculator shows 80%, it means the remaining lease is being modelled at about 80% of the value of a fresh 60-year lease. The other 20% represents the estimated value difference associated with restoring the tenure to a fresh 60 years, before applying the relevant premium-rate category.
The percentage generally becomes lower as the remaining lease gets shorter. It is a calculated modelling ratio, not an official valuation.
Important modelling points: the referenced PTG table distinguishes more than 2 years remaining and less than 2 years remaining but does not specify exactly 2 years; the calculator therefore stops and asks for PTG confirmation at exactly 2 years. It models a fresh 60-year lease only; a 99-year request is outside this calculator.
Important Notes and Disclaimer
Disclaimer. This is an illustrative planning tool, not an official premium quotation, valuation, legal opinion or approval. The 2.0% annual growth assumption and 5.0% tenure discount rate are PI modelling assumptions, not PTG or JPPH rates. JPPH will determine the actual market values used for an official premium assessment. Eligibility, premium rates, discounts, lease tenure, foreign-company treatment, application route and approval requirements can vary by case and can change.
Confirm the applicable treatment directly with Penang PTG and, where relevant, Penang Development Corporation (PDC) before relying on the result or making a transaction decision.
Reference sources used by the calculator model:
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