Documents Needed To Change A Leased Property Into A Freehold

Selling a leasehold home is more difficult than selling a freehold one. One of the motives for converting a leased property to a freehold is for this reason. Knowing all the paperwork needed to finish the conversion procedure is crucial if you also decide to go that route. A building built on leased land or a plot is known as a leasehold property. The lease is only valid for the allotted time, which is normally 99 years. It may range from 30 years to 999 years in various circumstances. It is significant to remember that the purchaser of a leased property has no ownership stake in the building or the land.

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Only by converting a leasehold property to a freehold can he achieve it. If this is not done, he continues to be the lessee until the lease is over and pays the leaseholder the ground rent. The lessee must either leave the property by the contract’s expiration date or request an extension in exchange for a fee. A freehold property, on the other hand, signifies complete ownership of the property. The land is also own by the buyer in addition to the house. The clear title status of freehold properties aids in generating a higher capital value, Vertical Real Estate Solutions in Pune. Additionally, compared to leasehold properties, it is simpler to obtain a loan against a freehold property.

In general, freehold homes offer an advantage over leased homes. So, here is a step-by-step procedure if you want to turn your leased land into a freehold.


A manual for turning a leasehold property into a freehold

The lessee must get the property’s ownership title in order to change leasehold into a freehold. Either acquiring the property outright or receiving it as a gift can result in the transfer. It is crucial to have documentation like a search report, sale agreement, and sale deed when making an investment. However, it is require to obtain approval from the relevant agencies and statutory authorities if the property is construct on land that the government has leased. Also, it is vital to acquire permissions from-

  • Environmental division
  • Department of Fire
  • Department of Urban Land Ceiling


Search report

Hire a legal professional to provide a search report to start the procedure. A search report is a crucial legal document in real estate transactions that shows the property is clear of all liens, lawsuits, and mortgages. The report includes every necessary transaction that has been record relating to a certain property. For instance, the search report will include information about any historical transactions involving the property in question, such as sales, gifts, and mortgages, as well as the names of the people involved and the date of registration.


Sale agreement

The sale agreement comes next. The selling agreement must be sign and execute on a non-judicial document by the buyer and the seller. The sale agreement, as required by law, includes the terms & conditions accepted by the parties.


Conveyance deed

The conveyance deed is create on appropriate-value non-judicial stamp paper. It is a certificate that certifies the buyer has been given legal control & ownership of the property. The conveyance deed needs to be written and then recorded in the Registrar’s Office.



Property mutation refers to the transfer of ownership rights from the seller to the buyer. The land revenue division keeps track of the mutation information. It is also necessary for municipal records related to the payment of property taxes. A Mutation Certificate is given to the buyer once the mutation has been completed.

A privately lease property does not need the aforemention licences unless the property is prohibit or constrained by government regulations, such as leasehold land located in sensitive areas. Additionally, the conversion process differs between States; for example, some locations have outlawed the sale and acquisition of land near forests and mining operations.

Overall, converting a leased property to a freehold could be advantageous, especially if you intend to sell it for a profit. It’s crucial that you obtain all of the aforementioned authorizations and paperwork to ensure a simple & hassle-free conversion process.




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