Freehold Vs Leasehold Property: Know the Key Differences

What is Freehold Property?

The freehold property is a type of ownership that provides absolute rights with no limitations to the buyer. Owners have the freedom to sell, transfer, or modify the property at will. The simple way of opting for the sale deed registration eventually eases the property transfer to any preferred person. Consequently, freehold properties often carry higher price tags compared to leasehold properties.

Also Read: Movable Property: Meaning, It's Types and Legal Rights

Difference Between Freehold and Leasehold Property

When acquiring a property, it is important to be well-informed about the difference between freehold property and leasehold property:

Also Read: What is Immovable Property? It's Types and Legal Rights

Conclusion

Choosing between leasehold and freehold properties in India is a little tricky, especially when considering a property loan and property interest rates. This decision hinges on variables such as budget, investment objectives, and personal choice. Freehold properties offer full ownership and flexibility, which can be advantageous. However, for those considering a property loan, leasehold properties might be more affordable, particularly in prime areas. It's crucial to weigh these factors seriously and consider how they align with your requirements before making a decision.

Frequently Asked Questions

1. Is it better to buy a leasehold or a freehold?

In terms of budget and a long-run plan, freehold is permanent ownership, whereas leasehold may be a little bit of a less expensive option but you may have restrictions.

2. Are apartments leasehold or freehold?

Apartments can be either freehold or subject to a fixed-term lease, depending on the developer and the regulations governing the unit.

3. Is it worth buying freehold?

Yes, some believe that these properties may be more appealing and may have a greater resale value as they give unrestricted ownership and more promotional chances.