Freehold Property Vs Leasehold Property

Freehold Property Vs Leasehold Property

In layman terms, Freehold Property is type of property wherein buyers or society owns the apartment or structure along the land it has been built on as well, Such properties are free of hold of any other entity apart from the owner.

Leasehold Property is type of property wherein buyer or owners own the apartment or structure but not the land, Land can be owned by the State Government or any other entity and is leased out to the property owner for certain number of years, At the end of lease period owner or occupant will have to renew lease.

No Annual Rental need to pay in case of freehold properties where owner owns both land and Structure on  freehold basis Wherein case of lease hold properties owner need to pay certain fixed rental for land as he does not own land.

In many cities the lease period may be 33 years or above, Maximum it could be as high as 99 or 999 years known as perpetuity lease.

Leasehold Property can be converted to freehold Property through the relevant documents upon certain premium payment or conversion charges to local authorities which may vary from state, District etc.

Transfer of property : Freehold Properties can easily transfer through registered title deeds as the owner has full rights to either transfer or sell and it is relatively hassle free.

For Leasehold Properties, Transfer of property from one person to another is pretty difficult and the owner needs to transfer his name in records or simply we can say mutation is required for leasehold properties. 

Freehold properties are a little more expensive than Leasehold properties so make sure before property purchase whether it is freehold or leasehold.