Friends,
Attached is the snap shot from the Registered lease deed for LB.
One of the clauses say the following statement which I am not able to comprehend.



The lease rent shall be enhanced by 50% after every 10 years i.e; 1.5 times of the prevailing premium lease rent.

I guess, the clauses for all lands alloted by NOIDA Authority to various builder shall be same with LITTLE or NO difference. So following question is valid for all lands.

Does this clause mean that buyer has to shell out extra money every TEN years apart from the current lease rent being charged by builder.
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  • yes NA can increase lease rent in every 10 years but normally lease rent paid at once for90 years i.e you can pay one time lease rent ( total lease rent equalent to 10 years value) then you are out of this increase.We did same in our society also.
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  • Originally Posted by dhanam
    yes NA can increase lease rent in every 10 years but normally lease rent paid at once for90 years i.e you can pay one time lease rent ( total lease rent equalent to 10 years value) then you are out of this increase.We did same in our society also.


    But the builders are paying over a period of 8-10 years. So let's assume, they pay to NA as scheduled by NA. So till the end of 10 years from allotment of the plot, 100% amount along with interest is paid to NA. What after that?

    Still the lease rent shall have to be paid by buyer every ten years?
    I am really not able to understand this.

    PS: Attached is the schedule of payment for LB as agreed between NA & 3C.
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  • I think the same lease deed has another provision for paying one time lease rent for entire 90 years (capital value 10 or 11 year"s lease rent).

    Most builders prefer to pay one time lease rent and accordingly charge/ collect from flat buyers. I guess the Rs. 90/95/100 lease rent we are paying to the builder is one time lease rent and there will be no further demand on this account in future.
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  • My comprehension for this is follows :

    252 crores is the lease rent for ten years for LB land.
    3C paid 1% (2.52 crores) during allotment and over next 8 years till Dec-2016, they shall pay the rest amount along with the interest component.

    After 10 years, i.e; in the year 2018 (original allotment in Dec-2008), LB residents shall have to pay again the lease rent.

    PS: I guess same shall be applicable to all lands alloted to builders across NOIDA region and buyers in each of this project shall have to pay additional lease rent. (Hence builder are not mentioning the lease rent as ONE TIME)
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  • Originally Posted by SMJ2011
    I think the same lease deed has another provision for paying one time lease rent for entire 90 years (capital value 10 or 11 year"s lease rent).

    Most builders prefer to pay one time lease rent and accordingly charge/ collect from flat buyers. I guess the Rs. 90/95/100 lease rent we are paying to the builder is one time lease rent and there will be no further demand on this account in future.

    all builders (may be few exceptions) are paying over a period of 8-10 years not 100% payment in one go.
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  • LChand Ji....you are confusing between land premium and lease rent.

    Land premium which is land cost, is being paid in installments over 8-10 years time with interest.

    Lease Rent is annual recurring payment independent of land premium and the same is to be paid annually during entire tenure of lease (90 years) even after the land premium has been fully paid.

    Authority has a scheme of one time payment of lease rent.
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  • Originally Posted by SMJ2011
    LChand Ji....you are confusing between land premium and lease rent.

    Land premium which is land cost, is being paid in installments over 8-10 years time with interest.

    Lease Rent is annual recurring payment independent of land premium and the same is to be paid annually during entire tenure of lease (90 years) even after the land premium has been fully paid.

    Authority has a scheme of one time payment of lease rent.

    are you sure Land Premium & Lease Rent are different?
    I don't think..these are different. Here the land is not being sold but rented on lease. So there is nothing like LAND Premium ...if it is..its the synonym to Lease Rent.
    Forgive my ignorance but I am able to comprehend this way only.

    Anyone has clarity over this issue, please enlighten the poor janta like me.
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  • Originally Posted by LChand
    are you sure Land Premium & Lease Rent are different?
    I don't think..these are different. Here the land is not being sold but rented on lease. So there is nothing like LAND Premium ...if it is..its the synonym to Lease Rent.
    Forgive my ignorance but I am able to comprehend this way only.

    Anyone has clarity over this issue, please enlighten the poor janta like me.



    Yes, I am dead sure...Please read your lease agreement again and you will understand this.

    Every piece of land in India attracts annual rent, be it a freehold or a leasehold.

    When a land is allotted on lease hold basis, instead of calling it "land cost", it is called as "land premium".

    Seen this across many states.
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  • Originally Posted by SMJ2011
    Yes, I am dead sure...Please read your lease agreement again and you will understand this.

    Every piece of land in India attracts annual rent, be it a freehold or a leasehold.

    When a land is allotted on lease hold basis, instead of calling it "land cost", it is called as "land premium".

    Seen this across many states.

    any more views, same or differing?
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  • Please continue reading the allotment letter. Attached is for your ready reference. Regards, NJ
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  • Originally Posted by LChand
    are you sure Land Premium & Lease Rent are different?
    I don't think..these are different. Here the land is not being sold but rented on lease. So there is nothing like LAND Premium ...if it is..its the synonym to Lease Rent.
    Forgive my ignorance but I am able to comprehend this way only.

    Anyone has clarity over this issue, please enlighten the poor janta like me.


    this is true. i have a house which i built after purchase of land. During the land purchase, we paid the premium (profit to the seller), allotment / current circle rate and Lease rent. Lease rent can be paid yearly or lump-sum for 99 yrs (10 x annual lease rent). usually lease rent (yearly) = 1% of the current circle rate. i hope this is clear
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  • Originally Posted by SMJ2011
    Yes, I am dead sure...Please read your lease agreement again and you will understand this.

    Every piece of land in India attracts annual rent, be it a freehold or a leasehold.

    When a land is allotted on lease hold basis, instead of calling it "land cost", it is called as "land premium".

    Seen this across many states.



    TRUE SIR THIS IS LAND PREMIUM NOT LAND COST
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  • Originally Posted by LChand
    Friends,
    Attached is the snap shot from the Registered lease deed for LB.
    One of the clauses say the following statement which I am not able to comprehend.



    The lease rent shall be enhanced by 50% after every 10 years i.e; 1.5 times of the prevailing premium lease rent.

    I guess, the clauses for all lands alloted by NOIDA Authority to various builder shall be same with LITTLE or NO difference. So following question is valid for all lands.

    Does this clause mean that buyer has to shell out extra money every TEN years apart from the current lease rent being charged by builder.

    L chand g, can u pls share the sub lease deed format,(in complete) which the builder will make us sign while possession, i want to read the exact line which states that in case of default by builder in payment of lease amount to NA, we the end users will have to pay the amount....my email id- rajababu123@gmail.com.....
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