What Happens to Your Property After a 99-Year Lease Ends? Know the Rules

A lease, or leased property, is usually valid for a period ranging from 30 to 99 years. Residential flats are typically leased for 90 to 99 years. When a builder sells a flat under a lease agreement, the buyer retains ownership of the flat only until the lease remains valid.

Various laws and regulations govern property ownership. The house or flat you currently live in is either freehold or leasehold. In cities like Noida, Greater Noida, Gurugram, and Ghaziabad, most flats are sold on a leasehold basis. Many flat buyers are unaware that their property is on lease. Even more concerning is that they do not know what happens to their flat once the lease expires. In this article, we will address this crucial question and understand what happens to your flat after the lease period ends.

What Happens to Your Property After the Lease Ends?

A lease for a residential flat generally lasts between 90 and 99 years. When a builder sells a flat under a lease agreement, the buyer retains ownership only until the lease remains valid. Once the lease expires, the actual ownership of the flat reverts to the landowner, which is usually the builder.

For example, suppose you purchase a flat in Greater Noida in 2025 for ₹1 crore on a 99-year lease. Your lease will expire in the year 2194. Until 2194, you will have complete ownership of the flat. However, after the lease period ends, your ownership rights will cease. At this point, the builder can take any action with the flat as per the lease agreement.

How to Convert Leasehold Property to Freehold?

There is no need to panic, as the government periodically introduces schemes that allow leasehold properties to be converted into freehold properties. To avail of this benefit, you need to pay a conversion fee. Under this rule, when the lease of your flat expires, it can be converted from leasehold to freehold. Additionally, schemes are available to extend the lease period, which also requires a fee payment.

Benefits of Converting Leasehold Property to Freehold

1. Full Ownership: Once the property becomes freehold, you gain complete ownership rights.

2. Better Investment: Freehold properties have higher market value and are easier to sell.

3. Easier Loan Approvals: Banks are more willing to provide home loans on freehold properties.

4. No Lease Renewal Hassles: Once converted to freehold, there is no need to worry about lease expiration.

How to Apply for Freehold Conversion?

If you wish to convert your leasehold property to freehold, you need to apply to the relevant authority, such as the Noida Authority, DDA, or other government departments. The required documents for the process include:

• Ownership-related documents

• Stamp duty payment proof

• Application form

• Prescribed fee payment

Conclusion

If you own a leasehold property, it is advisable to initiate the freehold conversion process in time. Doing so will not only secure your property but also prevent any legal complications in the future.