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Leasehold and freehold describe different property interests, but the deed and the land-owning authority determine the rights attached to a specific Delhi property. For DDA properties, fresh freehold-conversion applications have been on hold from 2 January 2026 until further orders. That pause does not establish the rules for L&DO, cooperative-society, private-lease or other properties.
What leasehold and freehold mean for a property buyer
With a leasehold property, the interest is held under a lease or sublease granted by a lessor. The deed sets out matters such as the term, transfer conditions, permitted use and any renewal provisions. The label “leasehold” alone does not tell you how much term remains or what happens at expiry.
With freehold property, the interest is conveyed as freehold rather than held under that lease. The conveyance and registered title documents still need to be checked for their scope, conditions and any outstanding claims. A freehold label is not a substitute for examining the title chain and property records.
| Question | Leasehold | Freehold |
|---|---|---|
| What document defines the interest? | The lease or sublease deed, allotment documents and registered transfer chain. | The conveyance deed and registered transfer chain. |
| How long does the interest last? | The applicable deed states the term and commencement date; do not infer expiry or renewal rights from a “99-year lease” label. | A lease term is not the defining basis of a freehold interest; check the conveyance and title records for the interest actually transferred. |
| Can the holder transfer, mortgage or change use? | Check the deed and the lessor’s rules for assignment, sale, mortgage, construction, subletting and change of use. | Check title documents and applicable property rules; do not assume every restriction disappears on conversion. |
| Does the tenure alone establish market value or loan access? | No general premium or lending outcome is established by the tenure label alone. | No general premium or lending outcome is established by the tenure label alone. |
There is no single tenure template for every property in Delhi. The authority may be DDA, L&DO, another public body, a cooperative society or a private lessor. The allotment letter, lease or sublease deed, conveyance deed if one exists, and registered transfer documents are the starting point for identifying the interest.
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What DDA freehold conversion changes—and what it does not
DDA has published a scheme under which certain eligible leasehold interests may be converted to freehold by conveyance, subject to eligibility and compliance conditions. Conversion is not simply a matter of paying a fee: title issues, required mutation or substitution, mortgagee consent and re-entry matters can affect whether a case can proceed.
Property types described in DDA’s published scheme
DDA’s legacy residential scheme described built-up residential plots, certain fixed-term residential properties, DDA LIG/MIG/HIG/SFS flats and cooperative group-housing flats on DDA-leased land. This list describes categories addressed by that scheme, not a guarantee that any particular property is eligible now. Check the allotment documents and later directions applicable to the property.
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Properties outside DDA
DDA’s scheme and procedures do not automatically apply to an L&DO property, another authority’s allotment, a private lease or a cooperative-society flat. A Delhi address does not establish which authority controls the tenure. Confirm the lessor and obtain that authority’s current written rules before relying on a conversion route.
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DDA’s January 2026 office orders put receipt of fresh freehold-conversion applications on hold effective 2 January 2026 “until further orders.” A separate instruction says applications received by 1 January 2026, with conversion fees deposited, are to continue being processed at rates applicable before 2 January. This is a pause on fresh conversion applications, not a stated blanket halt on all DDA allotment or property-disposal activity.
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DDA’s IDLI FAQ still describes an online application and conveyance workflow. Read that older general guidance as a process reference for eligible or in-process cases, not as confirmation that fresh applications are currently being accepted. The dated January 2026 order governs the new-application pause described above.
Conditions and dues that can delay or prevent conversion
DDA’s published guidance says applicable dues must be cleared before conversion. Examples include misuse, damage, subletting, unauthorised extension, ground rent, and service or maintenance charges. Its FAQ says conversion is not allowed where a matter is sub judice or there is encroachment on government land. The scheme also identifies title-dispute resolution, mutation or substitution, mortgagee NOCs and restoration of re-entered property as relevant conditions.
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Delhi property costs: separate the duties and charges
The Department of Revenue, Government of NCT of Delhi, lists the following headline rates on its property-registration information page, checked in 2026. These are not a complete estimate for a particular transaction. Confirm the applicable instrument, value base and current treatment with the registration authority before execution.
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| Charge | Published rate | What to keep separate |
|---|---|---|
| Sale-deed stamp and transfer duty | 4% for a woman buyer; 6% for a man buyer (Delhi Revenue, page checked 2026). | This relates to the sale deed; establish the applicable value base and treatment for the specific instrument. |
| Sale-deed registration fee | 1% of total sale-deed value, plus ₹100 pasting charge (Delhi Revenue, page checked 2026). | Registration is distinct from stamp and transfer duty. |
| Leasehold-to-freehold conversion duty | 4% for women; 6% for men (Delhi Revenue, page checked 2026). | This is conversion duty, not the land authority’s conversion charge or outstanding property dues. |
A DDA conversion charge is assessed separately from conversion duty. The amount can depend on authority, property category and area, alongside arrears, misuse or damage charges, restoration charges, ground rent and deed or registration details. DDA’s IDLI FAQ describes a provisional system-calculated conversion charge based on property type, locality and area, but the fresh-application pause means that should not be treated as an open intake or current quote.
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DDA’s 2014 modified conversion brochure described payment in up to five equal annual instalments at 12% annual interest. That is a legacy scheme provision, not a current residential fee offer or proof that those terms apply to a case today. DDA’s 21 May 2025 Circular 96 concerns provisional FY 2025–26 commercial and industrial conversion land rates subject to Ministry approval; it is not a residential conversion quote.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to assess a specific property before buying or converting
- Identify the authority and interest. Match the property to its allotment letter and lease or sublease deed; establish who owns or controls the land and what interest is being transferred.
- Read the term and conditions. Find the lease commencement date, remaining term, expiry and renewal language, and requirements for assignment, sale, mortgage, use, construction and subletting. Do not assume a universal outcome at the end of a 99-year lease.
- Reconcile the title and transfer record. Review the registered transfer chain, conveyance deed if any, mutation or substitution record, mortgage details and any required lender consent.
- Check compliance and liabilities. Obtain a written authority-dues statement and check ground rent, misuse or damage charges, unauthorised additions, subletting, maintenance dues, encroachment, re-entry or cancellation notices, and litigation.
- Confirm the available procedure in writing. For DDA, distinguish fresh applications from cases received by 1 January 2026 with fees deposited. For another authority or property type, ask the responsible lessor about eligibility and current procedure.
- Request a property-specific cost calculation. Separate conversion charge and duty from sale-deed stamp duty, registration, arrears, restoration or misuse charges, and legal or document costs.
Before committing, reconcile the allotment and lease documents with the registered records, approved use and building records, authority dues statement, mortgage NOC where required, and litigation searches. If the seller’s documents, authority records and claimed tenure do not match, resolve the discrepancy before treating conversion or transfer as assured.
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