Do You Know? Leasehold v/s Freehold Property

By Jay Dee Infra In Home Buying Tips No comments

Do You Know? Leasehold v/s Freehold Property

Leasehold property is given for the lease to the lessee for certain agreed time. The ownership and rights remain with the lessor; a fixed fee is settled and paid for annually as a rent. And if lessee wanted to sell the property, he needs to take prior permission from the land owners. For instance Noida authority and other owning authorities in NCR offer a lease for 90 years. Once the specified period gets over, the land owner renews the lease.


On the other side, in freehold properties, the owner can enjoy the utter freedom in the property. In this kind of property, owner’s right to the property (flat or rent) is full and unconditional. However, freehold properties are ideal for the individuals as they can attain absolute freedom on the property whereas leasehold property is lessee by the developer, the property can be availed in cheaper price as compared to freehold.

Advantages and disadvantages

Lease hold land cost less as compare to freehold land, the developer leases land very cheaply for construction at the good location, however, freehold land can be the bit costly for the developers, on the other side, freehold land seems ideal for the homeowners who construct the home individually.

In lease land developers are bound to perform all necessary legal requirements with the authority so any ambiguity in the future is completely avoided, builders are responsible for all legal formalities. And the establishment of the project is often building on the large scale with all basic to high-end amenities.

A builder is most concern about the cost incurred in property, but end user many get valuation or devaluation of the properties. On land valuation, all the profits have been transferred to the developer; on the contrary, the end user doesn’t get appreciation in a long term.