Points to be pondered before real question: 1. I am residing in this building since 1983. Taken on a pagadi basis 50k (receipt available). All the documents are in place. Right from the tenant society agreement to the rent receipts till date. 2. Electricity bill is in my name. Every other expenses related to the house is taken care by us as the tenants. 3. My daughters got married and shifted there base from the city. Even I want to shift to my base in Ratnagiri. 4. However, the honourary builder ( power of attorney issued by the owner to him), has asked us to vacate the house if we are interested. 5. The property value is approximately 20 Lacs. However, he is insisting on selling the flat (310 sqft) and he will give up around 2 Lacs or so. 6. Is it feasible to take whatever we are getting right now and hand over the flat to him or shall we keep paying rent, maintenance, taxes etc and keep it. Thanks in advance
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1) if property value is Rs 20 lakhs then on transfer of tenancy rights you should get around 13 lakhs
2) offer by builder is ridiculous
3) reject it . dont hand the flat to him .
4) keep the flat . pay rent , maintenance and keep on shuffling between ratnagiri and bombay
Also the building might go into redevelopment by government. So can we expect a better deal out of it? Or shall we negotiate with the builder and settle the deal for 3 lacs. Need your expert advice. Ps. The property is 30 plus years old. In a prime location.
1) dont settle for Rs 3 lakhs
2) if at all you want to sell your tenancy rights find a buyer who is willing to pay you 67%of market value
3) landlord is entitled to 33%on transfer of tenancy rights
4) if building goes in for redevelopment you would get ownership rights of flat you are staying in
5) if you dont get a buyer for Rs 13 lakhs or so keep the flat
The decision to hold the property especially if it is awaiting redevelopment, would be an intelligent decision because the worth of the property would appreciate to a great level after redevelopment.
But you are the better judge of the situation and can decide about this on your own after ascertaining the pros and cons in this and also other practical issues like benefits and difficulties.
Also the building might go into redevelopment by government. So can we expect a better deal out of it? Or shall we negotiate with the builder and settle the deal for 3 lacs. Need your expert advice. Ps. The property is 30 plus years old. In a prime location.
In my opinion, you may wait and hold the property since the value of the property would appreciate manifold on redevelopment.
Hence it would be wise decision to wait for few more time than to urgently settle with the meagre benefits that would look lucrative now.