Noida Authority Approves Conversion Of Leasehold Properties To Freehold
In a move that could help it earn a significant amount of funds at a time when it is struggling with crunch, the Noida Authority has approved the conversion of all properties from leasehold to freehold. A final decision was taken by the authority board on November 1, after examining a report prepared by consultancy firm Ernst and Young to check the viability of such a move. The decision would now need the Uttar Pradesh government's approval.
The Noida Authority plans to use the revenue thus earned to improve the city infrastructure. The authority has yet to reveal the amount it would charge property owners as conversion charge and the revenue it would generate through the move. However, it is not only the authority that would benefit. Such a step would also help homebuyers, new as well old, in multiple ways.
After over 2,000 protesters staged a dharna outside its Sector 6 office on October 4, the authority also decided to stop charging parking fee outside the city's industrial units measuring up to 18,000 square metre.
"The decision on the parking system, which is likely to get implemented in a couple of days, would provide relief to employees of 90 per cent industrial units and factories in Noida," Noida Entrepreneurs Association (NEA) media in-charge Sudhir Shrivastava told PTI. There are about 8,500 functional industrial units in Noida.
From leasehold to freehold — the difference
For the uninitiated, the two types of holdings – leasehold and freehold – establish ownership on a property. While a buyer is the absolute owner of a freehold property, a leasehold property is given to an owner for a limited period, typically for 99 years. In a leasehold property, a buyer does not enjoy absolute authority, which lies with the government. This is one reason why a property owner whose ownership is leasehold kind might not find financial institutions warming up to them in case they have to seek bank assistance to construct the building. Such properties also have a bleaker chance of getting sold if you put them on the market.
Noida also allows registry of all four floors individually
Earlier, the authority had also decided it would allow individual registry of each floor in four-storey buildings, the upper limit allowed in Noida. This will provide ease to buyers to transfer their property among their kith and kin. Recently, the Haryana government allowed registration of the fourth floor in residential buildings with a similar intent.