why in noida mostly properties are leasehold? m researching on noida real estate market m a student of MBA real estate

saurabh sharma,

10th February 2016

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Thanks for the reply sir, i understood sir leasehold property benefit both tanent and landlord... But the question is why mostly properties even residentials are leasehold... for example in delhi mostly residentials properties are freehold.... noida authority earn maximum revanue form lease rent is this the reason properties are leasehold in noida....

saurabh sharma,

10th February 2016

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What i think a leasehold property is that whose ownership is granted by a freehold owner over all or part of their land. Its ideal for flats because each flat can have a separate leasehold. Leasehold is also much more flexible for enforcing positive covenants - eg requiring each leasehold owner to do certain things, such as pay towards maintenance of common parts of the building such as exterior walls, roof, etc.

Mritunjoy Deb,

10th February 2016

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Hi Saurabh,
A leasehold contract does not act like a regular lease. Instead, a leasehold agreement provides the tenant with the right to exclusive use and possession of real estate for an extended period of time. The landlord hand over usage and other rights during that time period, but retains the property deed, or ownership. The leasehold agreement confers benefits to both the landlord and tenant.

Gautam G,

10th February 2016

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Right Gautam,
A tenant benefit of a leasehold interest is the associated tax deductions. A tenant entering into a leasehold agreement can deduct the rental payments it makes on the underlying land or structure from state income taxes.

Saras, Noida

10th February 2016

On the other hand, Entering into a leasehold agreement enables the property owner to avoid a lump-sum tax payment. Instead, the landlord records rental income from the leasehold agreement and pays ordinary income tax on that income.

Gautam G,

10th February 2016

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