Looking for flat in fateh baug kandivali west

Q: Want to understand about buying flat in leased property will y
There be any legal concern or will it create issue in redevelopment - fateh baug

Jatin, Mumbai

17th October 2014

Locality Review in Mumbai

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leased property

buying properties in kandivali west

leased properties in kandivali west

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Replies (4)

HI all,
I wanted to know the term CC and FSI? Your reply will be highly appreciable.

Ramesk Polekar, Mumbai

18th November 2014

Comment

Hello Ramesh,
The term FSI stands for Floor Space Index. It is a ratio indicating the built up area of a property to the total plot area available. CC means Completion Certificate or Commencement Certificate. A completion certificate is given to a builder only after the work is complete and is according to the Building Regulations. A commencement certificate on the other hand is issued by the authority certifying that the construction can commence. It is given only after the builder has obtained all the required sanctions.

Sunil Joshi, Mumbai

18th November 2014

Well Deepankar,
But it has several disadvantages like any building that is over 25 years old can go for redevelopment once it is declared dilapidated by an architect. Under the provisions of Development Control Rules it has become easy for developers to get buildings declared dilapidated even when they are not really so. Given the strong politician-builder nexus in the city, it is not difficult to get a building declared dilapidated by a government architect.

Praveen Modi, Mumbai

17th October 2014

Comment

Yes,
You are absolutely right. The redevelopment process also causes inconvenience to the residents as they will have to look for alternative places to stay in while the builder demolishes the old building and constructs a new one. It usually takes the builder at least 18 to 24 months to complete a project with an extended grace period of six months in case of any adverse eventuality.

Deepankar Godbole, Mumbai

17th October 2014

Hi Deepankar,
A redevelopment clause usually entitles the landlord to terminate a lease, before the end of the lease, in order to carry out major works to renovate or redevelop the building. Without premises, your business may be forced to close or suffer a loss in sales and unforeseen expenses if required to relocate.

Praveen Modi, Mumbai

17th October 2014

Comment

Hi Praveen,
Generally a proposed tenant should resist the inclusion of a redevelopment clause in the lease. If you decide to agree to a redevelopment clause, it is strongly advised that the clause should provide for you to be compensated so that you are placed in the same position as if the redevelopment did not occur.

Deepankar Godbole, Mumbai

17th October 2014

HI,
Property that is owned by a landlord and rented to a tenant who receives rights of use and possession in accordance with the terms of a lease agreement.

Or,

A written agreement under which a property owner allows a tenant to use the property for a specified period of time and rent.

Often the tenant is responsible for general repairs and maintenance. However, try to exclude structural repairs and capital items from the tenant’s obligations. Be specific about which items you require the landlord to be responsible for.

Deepankar Godbole, Mumbai

17th October 2014

Comment

@Deepankar,
Leasehold means that you have the right to occupy a property a property for a set period of time (the length of the lease), but do not own the building itself.

The advantage of owning property freehold, or having a share in the freehold of a property is that you are either totally in control, or have a say of what happens with the building, and in the latter case any repairs or service charges.

Sankalp, Mumbai

17th October 2014