I am based in London and wanted to buy a property in NOIDA as my main home once i come back for settlement.
BUT, I am now considering to NOT BUY any property in NOIDA or Greater NOIDA because of the fishy nature of contracts as explained to me by the brokers/agents (renowned ones…. )
I wanted to buy a freehold property and I was told that all properties in NOIDA and GN are leasehold properties which will become freehold automatically after 99 years or when the government converts it and you would be owner.
But on doing some digging I came to know that……
Some people are also in an illusion that they are paying the conversion charges upfront and would get a freehold property on possesion.
But I donnot think that is correct and infact the brokers confirmed that to be true.
1. When we say the property is a lease hold.
It is a lease between the builder and the NA.
and then the builder has a further agreement with the buyer.
NOTE: there is no agreement between you and the Noida Authority.
2. The one time payment you make to the builder as lease rent is actually not the conversion charges but the ground rent which should be paid annually but you are paying him upfront for the next 100 years.
3. What happens when the government(NA) converts the property to freehold.
They will charge a builder a specific amount to convert that property as freeholder in the NAME OF THE BUILDER and NOT THE BUYER.
The buyer will still be a leaseholder as per the initial agreement.
Why will the builder do so???
They will be the complete owner of the property and the buyers are just like tenants on a 100 year lease, who will have to pay the builder again and again to renew the lease every time they want to sell the property if the property value depreciates .
e.g. Similar properties with 99 years lease might be worth 50 lakh
but one with 70 years or less can be worth 30 lakh or even less.
What happens when the lease runs out ??
You can request the builder to renew buy paying a hefty sum once again on your purchased property or if the builder decides not to renew you have no legal right on the property any more.
I am not sure on this one but legally if all of the residents… ALL means ALL… every single one of you thousands…agree and legally want that the builder transfers the property to free holdership of a group housing society (which is you all) then he has to but on this terms… I mean what ever price he wants….
Imagine he having to pay 1 lakh for each house to the Noida Authority and him asking to pay each one one of you another 5 lakh for the same… considering the number of houses.. its a win win for him….
I am really surprised how everyone in NOIDA and Greate NOIDA is ignoring this clear GHOTALA…..
I would love to be proved wrong and buy my Dream HOME property in NOIDA … please share your thoughts…
BUT PLEASE DONT MISLEAD OTHERS UNLESS YOU HAVE PROPER PROOF….
I myself spoke to so many people and did not really get one single person who can give me a single line of LEGAL Documentation in any of their contracts stating they will get the freehold property without any more charges….
if any of you do have your contract.. can you please upload to the group…. I dont need the figures or names… you can hide them…. just bits emphasising on this…
I know there is nothing wrong in lease hold property… but it should be clear to everyone what they are doing and hence this big post…