Lease hold to free hold
What is Freehold Property & Leasehold Property? Differences, Benefits, Owner Rights
Property in India can be of two types, either freehold or leasehold. You may have often heard the term freehold discussed, and government decisions to change certain land areas from lease to freehold. Are you wondering what freehold property is all about? In this blog learn what freehold property is, how it is different from leasehold, as also the benefits of freehold property, owner rights,the documentation process and more.
What is freehold property?
Freehold property, as the name suggests, is a property that is free from any kind of hold. Any individual or association who owns the building also owns the land it is built on. Thus, the owner has absolute ownership of the property, no questions asked.
One of the main benefits of freehold property is that it is easier to handle if you wish to sell or lease it out. The complications are fewer, and the owner controls every aspect of the building without being answerable to anyone else.
When you buy a freehold property, you can do whatever you want with it, including building additional rooms or floors or installing elements without worrying about your rights.
What is leasehold property?
Leasehold properties are exact opposites of freehold properties. These are properties you don’t own but lease. The lease periods may be as low as one year and as high as even 99 years. This way, you may use the building during the lease period, but you cannot claim rights on the land and may have to contact the actual owner if you wish to make any changes to the building.
The main advantage of leasehold properties is that your responsibilities are limited. You may not have to spend money on major repairs or damages, and you can stay away from regular maintenance costs.