Your flat has a 99-year lease. What happens when it ends?

In cities like Noida and Greater Noida, most properties fall under the leasehold category

Property ownership comes in different forms, and understanding these is essential before making a purchase. One key distinction buyers often overlook is whether a property is leasehold or freehold, as this affects how long you actually own the land.This becomes especially important in cities like Noida and Greater Noida, where most properties fall under the leasehold category. Let's understand what this means and what happens once the lease period comes to an end.

Leasehold property?

In a leasehold arrangement, the land is usually owned by a government authority such as the Noida Authority or Greater Noida Authority. Buyers get the right to use the land for a fixed term, typically 99 years, after which the lease may be renewed or extended.

This system allows the government to manage urban development properly.

Lease rent

Owners must pay an annual lease rent to the authority for using the land, usually a small percentage of the total land cost, which may increase over time. Failing to pay this rent regularly can lead to penalties, interest charges, or legal issues.There is no rule converting leasehold property to freehold after 99 years. Authorities may occasionally offer conversion schemes, allowing owners to apply and pay charges, but such policies depend on government decisions at the time and are not always available.

What happens when the lease expires?

Most commonly, the authority allows lease renewal upon payment of a renewal fee, with new terms possibly applying. Alternatively, owners may need to pay extension charges based on prevailing market value, which could be higher after many years.In rare cases, if the lease isn't renewed or conditions are violated, the authority can repossess the land, though this is uncommon and usually avoidable.In Maharashtra, leasehold properties remain subject to the terms of the original government lease, and the state has recently moved to make the distinction between government ownership and leaseholder rights clearer.

In June 2026, the state government directed that government leasehold land be recorded in revenue records with the Maharashtra government shown as the occupant, while leaseholders are listed under “Other Rights”.In Delhi, leasehold properties of the Delhi Development Authority (DDA) can be converted to freehold under an applicable conversion policy, but the process is currently on hold. In August 2026, the Centre informed the Rajya Sabha that DDA's existing residential-property conversion policy was under review and that pending conversion requests had been put on hold.