Holding property under a long lease, often 30 to 99 years, from a landowner such as a development authority or industrial corporation. The lessor keeps the land and sets conditions.
How it works and what to check
Authorities such as the Noida and Greater Noida authorities and many industrial development corporations allot land only on lease. Flats built on such land are leasehold too, and a sale may need the authority's permission, a transfer fee and a fresh tripartite or sub-lease deed.
Check the lease term remaining, the ground rent or lease rent, the transfer charges, and any use conditions whose breach can lead to cancellation.
Common questions
What happens when a lease ends?
It depends on the lease: some allow renewal on payment, some revert the land to the lessor. Read the terms.
Do banks lend on leasehold property?
Yes, usually, if enough of the lease term remains and the lessor's permission to mortgage is available.