There is a really good news for home owners of Noida in Uttar Pradesh as authorities contemplate converting leasehold ownership to freehold soon.
The Noida authority had hired the consulting firm Ernst & Young, which is expected to submit its report next week. The firm was asked to explore if the conversion will help the authority earn more revenue, which could then be utilised for maintenance work.
Alok Tandon, Chief Executive Officer of Noida Authority was quoted by Hindustan Times, “We are working on the proposal calling for the conversion of properties from leasehold to freehold as it will fetch more revenue that can be used for development and maintenance. But to make that happen, we will have to discuss the issue at the upcoming board meeting. If the board approves, we will send the proposal to the Uttar Pradesh government for final approval.”
Under the existing leasehold system, an owner of a flat or a bungalow has the ownership of the property only for 99 years. They also have to seek the government’s permission before selling their already purchased properties. This will change under the freehold system since not only will they be able to have the outright ownership of their properties, they can also sell them without much bureaucratic hurdles.
In countries such as United Kingdom, a home buyer has the option of buying properties under both leasehold and freehold systems by paying additional amount.
This has been a long demand of the home owners and buyers in Noida. The news will come as a great respite to the 16 lakh residents of Noida, whose urban area is carved out on 15,279.90 hectares of the 20,316 hectares acquired from 81 villages.