“The default termstore for this site cannot be identified” – Error on Creating Local Term Set Managed Metadata Column

When trying to create a Local term set by selecting the option “Customize your term set:”, got the error message: “The default termstore for this site cannot be identified” 

Root Cause: 
This is because In Managed Metadata Service Application – The default storage location for Term Sets is not specified!

Solution:

Go to Central Administration >> Manage Service Applications >> Highlight your Managed Metadata Service Application >> Click on the Service Connection >> Properties icon in the ribbon >> Enable “This service application is the default storage location for column specific term sets.” 

This will fix the problem!