We are planning to purchase 2 BHK flat in one of redeveloped society in Powai. All the link documents and redevelopment related documents are clear. One important point to understand is property land is on sub-lease expiring on 31st March 2047. The owner of the land is Mr. Sharma given on lease to Mr. Bhatt who in turn sub-leased to Mrs. Dhosi, As part of redevelopment Mrs. Doshi has transferred her sub-lease rights to society. With regards to the above, I have following questions 1. Given that it is kind of private lease what will happen once the current sub-lease term expires on 31st March 2047? 2. Will there be chance of not renewing the lease? 3. If lease is not renewed then what will happen to the flat owners? 4. In such cases, will be any further issues in the future, which I need to consider? In terms of ease of resale, possibility of redevelopment, etc 5. Also is there no clause in law which will give right to flat owners or society to purchase the land after being on lease for specified number of years, even though land owner does not want to sell? or it is case of renewal upon every expiry? 6. What about lease rentals? Who will borne the lease rentals? and approximately how much can be the rental? in 1963 when the sub-lease was entered the lease rental was 100000 Rupees, what can be indicative range of lease rental during 2047? 7) on positive side, say if lease is renewed on 2047? but is there any chance ever in further future of not renewing the lease? Thanks for your kind support and guidance Regards
Ask a question and receive multiple answers in one hour.
Lawyers are available now to answer your questions.
In case lease is renewed lease rentals will be at higher rate
2) it is at discretion of lessor to renew lease . He may refuse to renew unless you agree to pay higher lease rentals
3) you would have problems in resale of flat
4) no right for purchase of land by the society
5) don’t purchase the flat
what will happen if the lessor does not renew the lease? what are the options for the flat owners? Also, is deemed conveyance possible in this case?
Deemed conveyance is not possible
There must be a renewal clause in lease deed
If lessor refuses to renew the lease you cannot force Lessor to do so
1. check the sub-lease agreement. ask seller to request society to give you that document. or obtain certified copy from sub registrar office
2. check if there is a renewal clause in lease agreement and what will be the lease rent on renewal
3. the society can buy ownership rights from owner by paying him the market value of the land
4. when lease expires the lessee will cease to have any right over the land. however the lessee will become a tenant holding over
5. the owner upon expiry of lease cannot require society to demolish the building and give vacant possession to him. Even if there is any such clause in lease agreement then obviosuly there will be dispute which will go to court
6. the owner will have to file eviction suit against the lessee if the latter does not hand over the land to owner
7. however society will continue to remain owner of the structure/building standing on leased land
8. the lease rent will be divided among the flat owners in proportion to their area
After expiry of the same the parties have to renew,hold or extend the said lease agreement as per the intention of parties and original lease agreement.
1. If the lease agreement provides for renewal of their lease agreement on expiry oif its term, then it can be renewed.
2. It depends on the recitals therein.
3. The flat owners have to vacate.
4. It depends on the conditions therein as agreed upon.
5. Yes, it would be termed as renewal.
6. The rental amount and the enhancement till the end of the term of the lease may have been written in the lease agreement, you may go through it for more clarity.
7. It depends on the recitals in the agreement.
what will happen if the lessor does not renew the lease? what are the options for the flat owners?
If the lessor do not want to renew the lease agreement, then you may have to look for the solutions that have been provided in the sale agreement while you entered into the same at the time of buying the property.
Also, is deemed conveyance possible in this case?
In case of deemed conveyance, the builder/ land owner or their legal heirs are not co-operating, therefore, the aggrieved parties appear before the Designated Competent Authority, who hears all the parties and passes the necessary order of conveyance. Deemed Conveyance is obtained as a legal remedy against the defaulter builder/ landowner who do not want to part with the land and the building in favour of the society.
You may better obtain a proper legal opinion about the property, and buy only when it is recommended to buy after analysing all the factors that have been asked as a query in this forum.