There are no legal issues in signing a lease for 10 years. The lease agreement requires compulsory registration according to law. Please get the agreement suitably drafted by a competent advocate, execute and register it duly.

A suitable clause for pre-determination (earlier termination) of the lease, requiring, say, a three-month notice period, peaceable vacation of the premises and handing over, landlord's right to recover damages for any structural damage (from out of the rental deposit) will protect your interests adequately.

It’s better you execute a leave and licence agreement with notice period clause. You can keep a lockin for 5 to 7 years as per the terms and later rift 1 months notice can make them vacate 

In Ghaziabad, using upper residential floors for full commercial purposes may require a No Objection Certificate (NOC) from the Ghaziabad Development Authority (GDA) and the housing society. Non-compliance could result in hefty penalties or municipal sealing

2)10-year lease usually includes a mandatory mutual Lock-in Period 

If you want the tenant to vacate before this period ends, you could face heavy financial penalties, or you may need to buy out the remainder of their investment.

3) If the tenant vacates early or sublets the space without your permission, you are left with unauthorized structural alterations and potential disputes over the heavy fitments

4) Require the tenant to submit all architectural and plumbing blueprints for your written approval before starting work. Explicitly state that any permanent, structural changes become your property upon lease termination.

Signing a decade-long lease introduces serious vulnerabilities, especially in Uttar Pradesh (Ghaziabad).

In India, any lease exceeding 11 months must be registered. If you sign a long-term lease and the tenant stays for 10 years, evicting them can become a multi-year nightmare if they refuse to leave. The longer a tenant occupies a space, the harder it is to reclaim it through Indian courts.

You cannot easily sell the property. A buyer looking for a vacant property to self-use or redevelop will walk away if there is a tenant legally locked in for another 6 years.

Under Section 30 of the Income Tax Act, if the tenant treats the ₹15-20 lakhs as capital expenditure, it’s fine. But make sure the contract explicitly states that you are not paying for this, nor will it be deducted from rent, otherwise you could face complex tax auditing or depreciation disputes.

If you sign a 10-year fixed lease, you cannot just wake up in Year 4 and say, "I want my floors back." The law protects the tenant’s right to stay because they invested ₹20 lakhs based on the promise of a 10-year tenure to recover that value.

You can negotiate a 3-year lock-in period for the tenant, but keep a 6-month notice period for yourself after the lock-in expires. However, no tenant spending ₹20 lakhs will agree to this unless you agree to reimburse them a prorated amount of their interior costs if you kick them out early.

If you decide to proceed, do not use a standard stationery-shop rent agreement. Hire a local Ghaziabad property lawyer to draft a Lease Deed with these non-negotiable terms:

The tenant can do cosmetics (paint, tiling, plumbing fixtures). They cannot break pillars, demolish load-bearing walls, or alter the structural layout of your 4-storey building without your explicit, written blueprint approval.

The contract must state: "Upon termination or expiry of the lease, all permanent fixtures (flooring, plumbing, electrical wiring) will become the sole property of the landlord without any compensation to the tenant." They can take their ACs and loose furniture, but they can't rip out the bathroom tiles when they leave.

Since Ghaziabad authorities are strict about mixed-use properties, explicitly mention who pays the commercial house tax/property tax and commercial electricity rates for those floors. Usually, the tenant pays all utility and operational taxes incurred due to their usage.

In Ghaziabad, converting a portion of a mixed-use building from residential to commercial is heavily regulated by the Ghaziabad Development Authority (GDA) and the Ghaziabad Nagar Nigam (Municipal Corporation).

Because you already have an active shop on the ground floor and commercial use on the first floor, your building is likely located in a mixed-use or "notified commercial/bazar street" zone. This makes the process easier, but you cannot simply hand over the keys to the tenant for commercial use without legal regularisation.

File an online application for conversion from residential to commercial mixed-use for the second floor. You will need to upload your original GDA-approved building blueprint, property chain documents, and allotment/registry papers.

Running commercial activities on a residential floor without changing the electricity meter category is considered power theft in Uttar Pradesh, attracting heavy fines and immediate disconnection. Ensure the tenant does not commercialize the floor until the electricity meter category is updated.

Make application to GDA for NOC to convert residential second floor into commercial