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Can a property which is on lease be purchased


02-May-2023 (In Property Law)
Hello, I am planning to purchase a Villa in Kolkata West International City in Salap, Howrah, West Bengal. I came to know that the land there is in Leasehold. KMDA has given the lands in lease to Universal Success Group (Promoter of KWI) for 999 years lease. So, I have few queries regarding this. 1. Can I purchase a Leasehold property? 2. How the leasehold property is sold, will the lease be transferred to my name? 2. Can the property be mutated to my name, can I be the owner of that property? 3. Can I sale the leasehold property after I purchase it? 4. Is it advisable to buy leasehold property, what can be the problems with leasehold property. Please provide your valuable advice on this matter. Thanks
Answers (4)

Answer #1
520 votes
1. You cannot purchase Leasehold property but you can take it on lease, it is almost equal to purchase.
2. Yes, absolutely correct, the lease will be transferred to your name by virtue of a lease deed or transfer of lease deed.
3. Yes, you can even mutate your name by showing the lease deed.
4. No, you cannot sale the property, but you can again transfer the lease to someone else.
5. Yes, you can easily buy a leasehold property.
There is no such problem for taking a leasehold property, proper searching must be conducted before taking or signing the lease deed.

Answer #2
666 votes
Sir, please note that when the lease will expire, your rights will also come to an end... but that is after 999 years. Otherwise everything is same as ownership. Please call if you have further questions.
Answer #3
865 votes
You will be given sub lease rights provided the sub lease deed given by KMDA allows sub lease. If you as sub lessee have the right to sub lease the property further Sub lease above 30 years is equivalent to sale and can me mortgaged. In lease and sub lease, the documents must be examined meticulously. After being a sub lessee you can mutate your name with KMC for payment of taxes.
Answer #4
776 votes
1. There can be transfer of name possible of the lease hold property. 2. The Leasehold property can be transferred from one lessee to another, hence name should be transferred in your name, 3. If the name is transferred in your name, it can be mutated to the local authority. You will be the new lessee of the property for more than 900 years which has the similar effects of being the owner. 4. Certainly transaction can be done if it is profitable. All the Salt Lake property are transferred as that way only. 5. Many of my clients in Salt Lake have been enjoying their property peacefully accordingly and are transferring them in lieu of considerable consideration. All the best. Regards

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Comments by Users

Divya
A 999 yr lessee develops a bldg and sells the flats, does he have to give conveyance of entire 999 yr lease or can he assign lease only for 99

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