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.

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

9 thoughts on “One time Lease rent and myths around it demystified

  • March 5, 2015 at 11:33 am
    Permalink

    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.

    Reply
    • March 5, 2015 at 11:36 am
      Permalink

      Builders contest that since registry has a mention of one time lease rent having been paid, it is not required. however, few builders still provide a copy of NA receipt for Lease rent on individual requests. Group requests may not be entertained in this matter.

      Reply
  • March 5, 2015 at 2:24 pm
    Permalink

    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 ?

    Reply
    • March 5, 2015 at 3:37 pm
      Permalink

      If you are not being asked for Lease rent by builder, then you certainly will be required to do so annually. We guess thats the best way to know whether builder is going for one time lease or annual lease.

      Reply
      • March 5, 2015 at 5:30 pm
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        He has not asked this from the initial few purchases but he is asking later buyers

        Reply
        • March 8, 2015 at 7:15 pm
          Permalink

          Better check with the builder for those initial few purchases. It has to be paid in any case. If registry is already done, check your lease deed.

          Reply
  • March 8, 2015 at 1:07 am
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    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

    Reply
    • March 8, 2015 at 7:18 pm
      Permalink

      Ask them to give you copy of form A before signing form B. Go through it in entirety for covered area, amenities etc.
      You can check your stamp duty here. you should know the sector where your project falls in (you can get circle rate for that sector from link provided in this article):
      http://go4reviews.in/2014/12/stamp-duty-calculation-for-flat-in-greater-noida/
      stamp duty is paid during registration after offer of possession

      Reply
  • July 26, 2017 at 11:57 pm
    Permalink

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

    Reply

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