Builder leasing project land to subsidiary for 99 yrs
Atuk
(Querist) 01 February 2014
This query is : Resolved
Hi,
Lodha in Mumbai is building a huge project in Mumbai called Palava City. As part of phase 2, Lodha is leasing the land to its subsidiary Lodha Hi-Rise for 99 years. All flatowners therefore will not be owners of the land.
In the terms, Lodha clearly states that after 99 years, the subsidiary (or the association) will be paying 50% of the market land rate for extending.
My question is - is this the norm? What happens to the flat owners after 99 years. do they really have to pay 50% of the appropriated land cost after 99 years?
Devajyoti Barman
(Expert) 01 February 2014
There is nothing called ' norm' in legal parlance. Even if it is there it is not enforceable by law.
Legally the lease expires after 99 years.
However I believe there must be a clause to buy back the lease hold property on payment of token amount when the lease expires.
Rajendra K Goyal
(Expert) 01 February 2014
Contact a local lawyer and show him the document.
R.K Nanda
(Expert) 01 February 2014
CONSULT LOCAL LAWYER.
Raj Kumar Makkad
(Expert) 01 February 2014
Unless a lawyer goes through your documents, no perfect opinion can be given by him so contact a local lawyer or to either of the experts personally.
malipeddi jaggarao
(Expert) 01 February 2014
Issue is such the author can efford to get legal opinion on payment to a local lawyer.
uttamtibrewal@yahoo.com
(Expert) 02 February 2014
Dear client....
The flat shall never be owned by them after 99 years its shall be at their wish to extend the term or cancel the lease... If asked its advisible to check all the terms and policies before making any investment on such projects...
for any query or help contact me
T. Kalaiselvan, Advocate
(Expert) 03 February 2014
It will more appropriate to get legal opinion fro a local lawyer before proceeding with the issue.
P. Venu
(Expert) 20 February 2014
The so called "Lease" is and cannot be lease as defined under Transfer of Property Act, but a "Kowl" (or "Cowl"). The terms of a "Kowl" are binding only period of Thirty years irrespective of the period mentioned in the document.
Incidentally, what is ownership? A person who has the right to property cannot but be the owner.
