You can lease out your premises for period of 5 years with a renewal clause
2) you can have a clause that lease rentals would increase by 10 per cent after period of 2 years or so
Lease period
What the optimum tenure to lease out commercial land? Is it possible to add the clause in the lease agreement to change the rental price according to the market price? What is the appreciation in rent year on year?
Asked 7 years ago in Property Law
Religion: Hindu
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6 Answers
The client is asking for lease period of 29 years. Please let me know if it's ok to lease out for such a long period? Would there be a problem to the ownership if we give it for long periods?
Asked 7 years ago
1) don't enter into lease period of 29 years
2) incorporate termination clause in lease deed for termination of lease by giving 3 months notice
The period can be any. A clause to increase or decrease the rent according to fluctuating market price can be validly added. The deed can also provide for an annual increase in the lease irrespective of market fluctuations. Get the lease deed drafted by a lawyer.
Lease of the premises would be permissive possession, provided the Lessee pays the fixed rents on time.
The terms and conditions must be very air tight and cover all aspects so as to protect any eventuality in addition to safe guarding your interests as well.
As I see it there is no problem if what is stated above is followed. In addition to the above, get the lease compulsorily registered at the sub-registrar's office.
Commercial rents are generally increased 15 to 20% pa.
TDS must be deducted by the lessee at the time of payment of rents into your PAN Number and TDS certificates must be provided in time.
The lease period shall be for a fixed term and can be renewed for another similar term by mutually agreed terms.
The rent can be escalated by 5% every year or 15% once in three years. It cannot be at par with the market price
The client is asking for lease period of 29 years. Please let me know if it's ok to lease out for such a long period? Would there be a problem to the ownership if we give it for long periods?
It depends on the mutually greed terms to let out the premises for a longer lease period and you may draft the rental and other aspects accordingly. You may consult an experienced lawyer for drafting the lease deed without any ambiguity or loss to your side.