Assignment of lease

A leasehold villa is sold not as land but as a contract. The buyer takes over the lessee's rights and obligations for the remaining term. It is formalised by a notarial deed of assignment (Akta Pengalihan Hak Sewa) with notice to, or consent of, the landowner, depending on the wording of the original lease.

The price depends on years remaining and whether an extension is fixed (a lease with a 69-year horizon and a "25 years, no mechanism" lease are different assets), the villa's condition, its income history and clean paperwork (PBG, SLF, rental licences). The market discounts each remaining year more steeply once fewer than 15 are left.

Before buying, check your own lease for the right to assign without the owner's separate approval each time, no owner's fee on assignment, and the notice procedure. Taxes on assignment are covered in the tax article and the BPHTB entry.

Read more in the blog

• Selling a Bali leasehold before expiry, discount and assignment
• Selling your villa and doing the exit properly
• Inheriting a leasehold villa in Bali and passing the asset to your heirs

Related terms

Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.