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