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Your Flat Will Be Taken Away After 99 Years! Who Will Be the Owner After the Lease Ends? Know All the Rules

In major cities like Delhi-NCR, leasehold property is quite common. In a leasehold property, a flat or other real estate is given to an individual on a 99-year lease. During this period, the individual can use the property, but the actual ownership remains with the original landowner or builder.

Your Flat Will Be Taken Away After 99 Years! Who Will Be the Owner After the Lease Ends? Know All the Rules

Difference Between Freehold and Leasehold Property

When purchasing property, it can be of two types:

  1. Freehold Property: The buyer gets complete ownership of the property and does not need any permission to sell or transfer it.

  2. Leasehold Property: This type of property is leased for a specific period, after which the ownership rights do not remain with the leaseholder.

What Happens After the Lease Ends?

The lease period for leasehold property usually ranges from 30 to 99 years. For example, if you purchase a flat in Greater Noida in 2025 for ₹1 crore on a 99-year lease, its lease will expire in 2124.

After the lease expires:

  • Your ownership rights over the property will end.

  • The real ownership will revert to the builder or original landowner.

  • The builder or owner can renovate or sell your flat to someone else.

Can the Lease be Extended or Converted to Freehold?

The government periodically introduces schemes that allow leasehold properties to be converted into freehold properties.

To convert to freehold:

  • You need to pay a government-mandated fee.

  • Once the process is complete, you will have full ownership rights over the property.

Additionally, there are schemes for extending the lease by paying a fee to increase the lease duration.

How to Identify if a Property is Leasehold?

If you are purchasing a property, it is crucial to determine whether it is freehold or leasehold. To do this:

  • Carefully review the property documents.

  • Ask the builder or seller directly about the status of the property.

  • Verify the details at the local property registrar office.

Things to Consider When Buying Leasehold Property

  • Ensure how much time is left on the lease.

  • Check the possibility of converting the leasehold property into freehold.

  • Be aware of any additional charges and renewal conditions beforehand.

Conclusion

If you are buying a leasehold property, it is essential to understand its lease duration and future implications. By obtaining the right information and taking necessary steps in time, you can secure your property rights effectively.

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