All You Need To Know About Leasehold To Freehold Property Conversion

leasehold propertyFor the transfer, sale, and purchase of property currently buyers have to approach to Noida Authority and apply for a no objection certificate.

To make it easy for the buyers, sellers, and the real estate market, Noida Authority has said it may consider making residential properties freehold. However, in Noida, all the plots and flats are presently sold on the leasehold basis.

In Leasehold property, the buyer is given the flat or plot on lease for 99 years and is required to pay a certain sum as lease rent to the authority, whereas under the freehold system, the buyer will get full ownership of the property. As the authority is considering this decision, there will be no problem.

After approval of this decision the sale and purchase of a property would be fast as there will not be need of no objection certificate from the authority and along with it, there will be more liquidity in the system.

Apart from leasehold to freehold, the Noida Authority is also considering floor-wise registration, similar to Delhi, may also be allowed in case of plotted developments. As currently in Noida, people can construct four floors on a plot but cannot sell the floors individually with a registry, but once it will be allowed then it will benefit property owners because they will be able to sell/transfer their properties without any certificate.

In order to convert a property from leasehold to freehold, the owner will be expected to pay some charges to the authority and like in Delhi; freehold conveyance deed will have to be registered with the registrar’s office on which they will have to pay certain stamp duty.

The authority’s board meeting will be held in December and then presented to the UP government.

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