Freehold and leasehold
A freehold plot is owned outright. A leasehold plot is held for a fixed term — commonly 90 or 99 years in Indian development-authority schemes — after which it reverts unless renewed, and it usually carries an annual or one-time lease rent. Two plots at the same rate per sq.m are different products if one is freehold and the other is a 33-year lease, which is why PropIQ shows tenure per plot rather than per scheme.
Worth knowing
- A freehold conversion charge is often payable on top of the bid — 12% at MDA, computed on the value including any location premium.
- Lease rent, where charged, is typically 10% of the same PLC-inclusive land value.
Questions people ask
What is Freehold and leasehold in a government plot auction?
A freehold plot is owned outright. A leasehold plot is held for a fixed term — commonly 90 or 99 years in Indian development-authority schemes — after which it reverts unless renewed, and it usually carries an annual or one-time lease rent. Two plots at the same rate per sq.m are different products if one is freehold and the other is a 33-year lease, which is why PropIQ shows tenure per plot rather than per scheme.
What should a bidder watch for with freehold and leasehold?
A freehold conversion charge is often payable on top of the bid — 12% at MDA, computed on the value including any location premium.
Anything else about freehold and leasehold?
Lease rent, where charged, is typically 10% of the same PLC-inclusive land value.