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.
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.
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Last Updated on March 5, 2015 by Go4Reviews
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.
That looks fine. It depends upon density of project and property value. 75 to 125 psf is pretty much standard. Further you can write RTI for getting information regarding property value.
How to calculate lease rent for an individual house built on plot sold by noida authority in sector 33.
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
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):
https://go4reviews.in/2014/12/stamp-duty-calculation-for-flat-in-greater-noida/
stamp duty is paid during registration after offer of possession
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 ?
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.
He has not asked this from the initial few purchases but he is asking later buyers
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.
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.
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.