The population of the metros of the country is increasing rapidly. Now if the population increases, the demand for houses, shops and all things related to humans will also increase. You must have seen the flat system in most places including the capital Delhi, NCR, Mumbai, Pune. But have you ever wondered why a 99-year lease is given on buying a flat and how can one get rid of it. Today we are going to answer all the questions related to lease.
Lease System
The flat system was started to solve the problem of increasing population and less space in the metros of the country. The trend of flat system has increased rapidly in all the crowded areas of the world. But often people are worried about the lease while buying a flat. In most places in the country, you must have seen that at the time of buying a flat, you are given a registered lease of 99 years.
Leasehold property
There are two types of property purchase and sale in the country, leasehold and freehold. Many people have this question in their mind that after the 99-year lease ends, will they lose their ownership rights on the flat?
What is freehold property?
The real estate property on which no one other than the owner has any right is called freehold property. Such flats are very expensive, but after purchase, the entire ownership right is with the buyer.
Leasehold property
You have ownership rights on leasehold property for a fixed period of time. The lease is usually for 30 or 99 years. After this, the owner again takes possession of it. The lease system was introduced so that the property does not have to be transferred again and again.
What will happen after 99 years of lease
If you have bought a flat on a 99-year lease, then it is important to know some rules. For example, from time to time, government agencies bring schemes to convert the flat from lease to freehold. Some money is required for this, after which the property is converted to freehold after the lease ends. After the lease ends, the value of the leasehold property falls. Because there is no buyer for it again. Therefore, such properties are cheaper.
What will happen if the building collapses?
If the building collapses before the lease period ends, then the yards of land on which the flat/tower is built is divided equally among all the flat owners on the basis of the current circle rate.
How to sell leasehold property
Now the question is whether leasehold property can be sold? If a person has bought a property on lease, he cannot sell it. He has the right only to transfer his remaining lease period. For that also he has to take permission from the authority. But if a person has taken a freehold property, then he can sell it. If you have a freehold property and you want to lease it to someone like a builder, then you have that right. After the lease period ends, you get that property back.
Also read: Can the land of the people of Bihar be snatched away in the land survey? Understand every rule here