How much does it cost to extend leasehold?

A leasehold property is a property on the land that is leased to the owner of that property for a fixed period of time, but the ownership belongs to the original owner (like the government). Anybody who purchases a residential apartment will own it only for the leasehold period. After that, he will have to extend the leasehold. Let me tell you how much does it cost to extend leasehold: As I told you before, the government authorities allot land at some places on lease. The lease period can range from 30 to 999 years. Once the lease period is over, you (a leaseholder) will have to apply for an extension and pay the required fee. Some states allow you to renew the lease on annual basis on the payment of rent and some allow you to renew it after 99 years by paying a required fee. Such properties get transferred to lessors after the completion of the lease period if the lease isn’t renewed. How Much Does it Cost to Increase A Lease The fees to extend leasehold differs from location to location. For instance, in Mumbai, the government has decided that the lease won’t be renewed for more than thirty years, and the rent will be revised every 5 years. They’ll charge a rent of 2 percent of 25 percent of the ready reckoner value of the plots for residential use. For industrial and commercial, 5% and 4% will be charged as rent respectively. The rent has been fixed at 5% for residential and commercial use of a leased plot. In the case of a cooperative housing society, the rent will be 1%. If the original rent is higher than the new lease rent, the original lease rent with a 25 percent increment will be charged. Read more: Who is the landlord of a leasehold property? What is the difference between leasehold and freehold property? How to convert leasehold property to freehold? What is a leasehold property? I hope now you know how much does it cost to extend leasehold.