One time Lease rent and myths around it demystified

We have received many queries regarding the Lease rent that a buyer owes to the authority. It is a general perception that a builder overcharges a buyer for the same. This post is specifically to demystify some delusions around this.

All residential properties in Noida, Greater Noida and Yamuna expressway are on leasehold for 90 years.
Allottee is required to pay the lease rent to the authority for ownership of the said property for 90 years.

While NA has not been forthcoming in clearing the air about how one time lease rent is calculated, as per a response to our RTI query, NA states the following two options for calculation of Lease Rent:
i) Either 1% of value of plot premium can be paid per year escalated by 50% after every 10 years or alternatively
ii) 11% of premium of plot can be paid in one shot. The latter is called One time lease rent.

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Response to our RTI
Response to our RTI

Our assumption is that premium of plot implies the price of the plot on the basis of ongoing circle rate (for the sector) at the time at which 11% (one time) lease rent is given by builder (lessee) to the authority.

Builders in the region generally charge their buyers Lease rent to the tune of 100 per sq ft and onwards. While buyers generally believe that this is on the higher side, it might not always be true as it would solely depend on the prevalent circle rate for the plot at time of possession.
We have created a calculator below for our readers to calculate lease rent per sq ft for their group housing society.
The reader shall be conversant with the site plan and have lease deed handy before using this calculator:

Hope it helps.

Comments/Feedback invited.

Last updated: March 5, 2015 at 10:56 am

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Abha Agrawal
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Abha Agrawal

Even i am clueless to get to know about one time lease rent for my flat in greater noida west. i booked a flat in october 2012. builder is asking rs.85 psf. will any one help me telling the genuineness of the rate or he is cheating upon us.

Sonu
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Sonu

How to calculate lease rent for an individual house built on plot sold by noida authority in sector 33.

vineet
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vineet

My question is about FORM-B
builder had given me allotment letter with FORM-B
should I sign Form B….??
as my project is in under-construction(greater noida west)
and what is stamp duty charges for greater noida west
and whether this has to pay at the time of booking/allotment
or at the time of registration

Iceman
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Iceman

Is it possible that the builder has paid only yearly lease rent and then once the people move in, they are paying the annual lease rent ? In other words, what is the norm in Noida ?

MD
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MD

Hi
Thanks for the article on Lease Rent. Can we ask the builder to give us the receipt of the money that he pays to NA on our behalf and get the money reimbursed instead of asking this upfront? Even if he’s collecting money upfront, he should provide the NA receipt for each unit and refund excess amount, if any.

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