Renewing Your Existing Lease
Renewal of a leave and license agreement is particularly a very easy process provided
you have good relationship with the property owner during the license period. In
Mumbai the lease rent market has gone through its own up and down over the past
few years.
To enable an easy renewal or an extension you need to ascertain the following:
- Present lease rent market conditions
- Demand and Supply
- Are the lease rent which you are paying are in tune with the market
- The license fees/rent you are paying is it the fair market price or if you have
a good deal or if you are paying less
- Is the current apartment suitable to you most
- Are you still likely to consider more options or newer buildings in your neighbourhood
- Mumbai has more than 1900 Buildings under construction across different locations
and it is best that you keep your eyes open for investor/nri deals in newer blocks
as the first year the lease rent returns are around 3% to those owners.
- Are you ok to commit to a further lock in period for 1 or 2 or 3 years with the
owners depending on your home needs etc.
- Are you likely to continue in your present job or business?
- Any impact of infrastructure development in the neighborhood
- Cost of moving in regards to packers and movers, stamp duty and registration, the
time spent on seeing homes, brokerage etc. will all these still add up to the lesser
rent you can find in any other place etc.
- Ascertain the future market and see if you are entering into a fresh contract with
escalations etc. in the future.
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Once you are clear with your decision, you will have to get the fresh Stamp Duty
and Registration done. You cannot continue on the old agreement even though if the
same is registered.
Stamp Duty
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Average annual rent plus Security Deposit etc. does not exceed Rs.250,000 for a
single term of 12 Months |
Rs.750/- for every terms of 12 Months or part thereof.
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Average annual rent plus Security Deposit etc. does not exceed Rs.250,000 but does
not exceed Rs.500,000 for a single term of 12 months
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Rs.1500/- for every terms of 12 Months or part thereof.
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Average annual rent plus Security Deposit etc. exceeds Rs.500,000 but does not exceed
Rs.20,00,000 for a single term of 12 months
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Rs.3000/- for every terms of 12 Months or part thereof.
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Average annual rent plus Security Deposit etc. exceeds Rs.20,00,000 for a single
term of 12 months
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Rs.5000/- for every term of 12 Months or part thereof.
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Apart from this Registration Charges of around Rs.1500/- apply. However, it is difficult
and cumbersome to take this responsibility and hence there are local agents at the
registration office and they would charge around Rs.3000/- per registration and
get you the same done quickly.