Lease: In today time, if a person buys land and builds his dream house, then there is a person who buys a flat. There is another way to buy a flat or land and that is to take it on lease. If you are also thinking of buying your dream home on lease, then you should consider it once again.
If you are living in the city, there are two ways to sell a house, one is to give permanent ownership and the other is to give you a 99-year lease. There are two ways in which property is currently dealt with. One is free and the other is a leasehold.
What is a free-standing property?
A freehold property is a piece of property that, once purchased, becomes the property owner property. No person other than the owner of the property can claim ownership of the property.
What is a leasehold property?
A leasehold property is one in which a person is given the right to the property at a fixed time or on a condition. Although the lease is for 99 years, but in some cities it is also for 10 to 50 years.
What does the rule say?
If the house or tower falls before the expiry of the lease period, the yard or land on which the house or tower has been constructed is divided equally among all the flat owners on the basis of the current circle rate.
The rules for converting to freehold:
But if you want to convert a leasehold property into a freehold property, then two methods are adopted for this.
- The first option is that many times the builder of the property gives the option to change the property on free hold in between. He can do so only if he has ownership of the property.
- The second option is that the government of the state in which you have purchased the property gives the option to the flat owners to convert the property into free hold during that lease hold period.