As you must know, leasehold is a property tenure, where one party purchases the right to own a property for a certain period (30-99 years). A leaseholder can extend a lease if he lives in a property for more than two years and there are less than eight years left on the lease. I suggest you extend the lease as soon as you can because the closer the expiry of the lease, the more expensive it is to renew.
How to Extend Leasehold
An extension clause is usually mentioned in Lease Deeds. This clause allows the lessee to go for an additional lease term after the expiration of the initial lease term, on the same terms and conditions of the original Lease Deed and is generally subject to increases in security deposit and rent. Generally, a lessor isn’t in a position to unreasonably deny or challenge a lease extension that is validly sought by a lessee.
Moreover, a Lease Deed that contains an extension clause won’t terminate upon the expiration of the initial lease term, if the option to extend the lease has been exercised as per the original Lease Deed’s terms and conditions. The Supreme Court stated that a Lease Deed doesn’t need to be executed afresh to give effect to an extension of the original lease.
The Delhi High Court also stated that the parties can’t rely on an extension clause to avoid payment of the required stamp duty for the total lease term expected under the original Lease Deed, just by paying stamp duty calculated based on the initial lease period. You are required to pay stamp duty in the first instance and calculated based on the total lease term expected in the original Lease Deed.
Now you know everything about extending lease on flat.
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This is all on how to extend leasehold.
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How to extend leasehold?
Teena
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2022-03-11T17:58:39+00:00 2022-03-14T18:37:32+00:00Comment
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