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Leasehold and freehold describe different property interests, but the label alone does not tell you what you can transfer, how long your rights last, or what a property will cost to convert. Check the actual title documents and the rules of the land-owning authority. For DDA properties, fresh freehold-conversion applications have been on hold since 2 January 2026, until further orders; that pause does not automatically apply to properties controlled by other authorities.
What leasehold and freehold mean
Leasehold
A leasehold owner holds rights under a lease for the term and on the conditions set out in the relevant deed. The lease identifies the lessor and governs matters such as duration, transfer, use, mortgage, subletting, renewal and what happens at expiry. The word “leasehold” by itself does not establish the remaining term or the consequences of expiry.
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Freehold
A freehold conveyance transfers the interest described in the conveyance deed, subject to applicable law, registered interests and other restrictions. It does not, by itself, establish that a building is authorized, that dues are paid, or that there are no title or use issues.
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Delhi properties may involve DDA, L&DO, a cooperative society, another public body or a private lessor. A DDA conversion scheme or procedure should not be assumed to govern a property under another authority. Identify the lessor or land-owning authority from the allotment documents and deed, then confirm the current rules directly with that body.
Does a 99-year lease mean the property automatically reverts?
Not on the label alone. A 99-year term does not, by itself, answer whether renewal or extension is available, what conditions apply at expiry, or what rights remain. Those answers depend on the particular lease or sublease deed and any later documents. Do not assume either automatic reversion or an automatic right to renew: read the operative clauses and obtain advice on the specific property if the expiry provisions are unclear.
How to compare two Delhi properties
Compare the documents and restrictions, not just the tenure labels. These are the points to verify for each property:
- Interest and term: Identify the interest being transferred, the lease commencement and expiry dates, and any renewal or extension provisions.
- Authority and applicable rules: Establish who owns or controls the land and which current procedures apply to that property category.
- Transfer and use conditions: Check requirements for sale or assignment, mortgage, change of use, construction and subletting. Conditions under one authority’s scheme are not automatically applicable to another property.
- Conversion availability: Confirm whether conversion is available for this property class and whether applications are currently being accepted. A scheme that exists on an older webpage is not proof that new applications are open.
- Compliance and outstanding matters: Check ground rent, misuse or damage charges, unauthorized additions, subletting, service or maintenance dues, encroachment, re-entry or cancellation notices, mutation or substitution, mortgage consent and litigation.
- Transaction costs: Separate any authority conversion charge and arrears from sale-deed stamp duty, registration fees and legal or document costs. Get a property-specific written calculation.
What the DDA conversion pause means in 2026
Fresh applications
DDA’s January 2026 office orders put receipt of fresh freehold-conversion applications on hold from 2 January 2026 until further orders. This is a pause, not a statement that conversion has been permanently abolished. It concerns DDA freehold conversion; it is not a blanket stop on every DDA allotment or disposal mechanism, and it should not be applied to other authorities without checking their rules.
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DDA says applications received by 1 January 2026 with the conversion fee deposited will continue to be processed at the rates applicable before 2 January 2026. If a case was submitted but the fee was not deposited, the stated protection does not expressly cover it; confirm its status with DDA rather than assuming it will be processed on the same basis.
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Who may qualify and what can block conversion
DDA’s published residential conversion scheme has covered specified categories, including built-up residential plots, certain fixed-term residential properties, DDA LIG, MIG, HIG and SFS flats, and cooperative group-housing flats on DDA-leased land. Eligibility and current treatment depend on the property’s allotment, category and subsequent directions—not simply on its address or leasehold label.
The scheme identifies title disputes, required mutation or substitution, mortgagee no-objection certificates and restoration of re-entered property as relevant conditions. DDA’s IDLI FAQ also says applicable dues must be cleared, citing misuse, damage, subletting, unauthorized extension, ground rent and service or maintenance charges. It says conversion is not allowed where a matter is sub judice or there is encroachment on government land. These are DDA-specific rules, not universal conditions for every Delhi leasehold property.
How to read DDA’s older online guidance
DDA’s IDLI FAQ describes an online application and document-submission process, a provisional system-calculated charge based on property type, locality and area, and a conveyance-deed workflow after approval. Treat that as general process guidance for eligible or in-process cases, not as confirmation that DDA is accepting new applications while the January 2026 pause remains in force.
Delhi property charges: what the published rates cover
The Department of Revenue, Government of NCT of Delhi, lists the following headline rates on its property-registration page, checked in 2026. They are not a complete property-specific estimate: confirm the correct instrument, value base and current applicability with the registration authority before execution.
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| Charge | Published rate | What to keep in mind |
|---|---|---|
| Sale-deed stamp and transfer duty | 4% for a woman buyer; 6% for a man buyer | Sale-transaction duty; confirm the applicable value base and treatment for the actual deed. |
| Sale-deed registration fee | 1% of total sale-deed value, plus ₹100 pasting charge | Registration charge for the sale deed; it is separate from stamp and transfer duty. |
| Leasehold-to-freehold conversion duty | 4% for women; 6% for men | This is conversion duty, not the land authority’s conversion charge or outstanding property dues. |
Charges that cannot be calculated from the title alone
A total depends on the authority, property category and area, the applicable conversion charge, arrears, misuse or damage charges, restoration charges, ground rent, and deed and registration details. Request a written, property-specific breakdown rather than treating the headline rates as the complete cost.
DDA’s 2014 modified conversion brochure described payment in up to five equal annual installments at 12% annual interest. Those are legacy scheme terms, not a reliable quote or assurance that installment terms apply to a current case. DDA’s 2025 circular setting provisional FY 2025–26 commercial and industrial conversion land rates was subject to Ministry approval and is not a residential conversion quote.
Documents to check before buying or applying
Reconcile the records rather than relying on a seller’s description of the tenure. For the property and its specific authority, obtain and review:
- The allotment letter and lease or sublease deed, including term, transfer, use and expiry clauses.
- The conveyance deed, if one has been issued, and the registered transfer chain.
- Mutation or substitution records and any required mortgagee no-objection certificate.
- A current authority dues statement, including ground rent and any misuse, damage, restoration, service or maintenance charges.
- Approved-use and building records, plus information on additions, subletting or encroachment.
- Details of litigation, title disputes, re-entry or cancellation notices, and any unresolved compliance issues.
- Written confirmation from the relevant authority of current conversion availability, procedure and charges.
Have a property lawyer review unclear title, expiry or transfer terms before committing to the purchase or conversion.
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