Today, the real estate sector is offering multiple housing projects to the aspiring home buyers in pan-India location. But, the home buying procedure involves technicalities which you must know while stepping into the property market.
The key point which we are going to elaborate here must be known prior finalizing the home deal. It is so because a prospect can’t step back once the home buying procedure is completed. So, let us now talk about the land on which the home is being structured. Definitely, the location is the first thing that people consider while buying a home but remember the thin line between location and land. Here we are talking about the land quotient.
The land is segregated into two sections and they are:
Today we are majorly focusing on key things to consider while buying a home built/under construction on a Leaseland plot.
Concept of Leaseland
The landowner is the first and last owner of the land. He/She sell the development rights to a second person and then this developer/builder construct a housing complex on that particular land and sell those living structures to the future homeowners.
Cons of Buying Home on Leaseland Plot
- Small Tenure, Big Problem –
Usually the tenure of Leaseland is for 99 years. But sometimes the authority or the landowner lend-lease for a short period of 30 or 40 years. In this case, the homeowners’ lands in trouble as buying a home include huge financial investment and no one buys property very often. But this short period lease dismisses the right of the landlord who pays a handsome amount to own property.
- Minimum Finance for Home Buying –
The home buyers are likely to get disheartened as many financial institutions won’t offer loan or loan against the mortgage for buying a home on a Leaseland plot.
- Problem in Reselling Property –
The buying/selling of a home includes the transfer of property titles. But, the homes built on Leaseland are bit difficult to sell because of the paperwork where the landowner is person A, the current homeowner is person B and then the buyer is a person C. So, there are multiple owners and getting papers cleared is a major problem to deal with.
Points to Consider Prior to the Purchase of Home on a Leaseland Plot
The only thing to remember here is to obtain the transfer memorandum from the seller. This letter makes you the official custodian of the property and thus you are not required to ask for any permission for building/renovation in that particular area.
Benefits of buying a home on Leaseland Plot
Low Price –
The homes/apartments built on this kind of land are cheaper in comparison to the regular properties. The reason behind this price difference is that the developers purchase only the development rights and the land remains in the original owner of the land. Thus, the expenses incurred during the construction are not high in comparison to the regular housing projects construction. This is why the residential units on a Leaseland cost lesser.
Positive Future for buying a home on Leaseland Plot
The real estate sector has witnessed a huge change and the new reform has added a feather in the cap of this industry. In the current scenario, most of the States are converting the Leaseland plots into freehold plots for which one is required to pay the conversion fee.
Thus the property prices will increase in future and buying of property built on a Leaseland is a profitable option only if the conversion of land type is possible.