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What is Freehold Property And Leasehold Property ?

Aadi by Aadi
December 23, 2019
in Civil Engineering, Construction
0 0
0

Freehold property –

A freehold property is clearly defined by its name means which is “free from hold” means the buyer receive the the complete right for lifetime (without any boundation) to sell or transfer the buying property to any other person. In other simple word you are the single owner of this property, you can sell it or transfer the property to another.

  • In a free hold property, there is no encumbrance to the absolute title of the property.
  • A free hold property can be transferred as inherited by real owner to their children.
  • At the time of sale of a freehold property does not require consent from authority, so that easy to sell and less paperwork, thus, making it more value of property than leasehold property.
  • A freehold property can be transferred by registration of sale deed.

Leasehold Property –

The legal agreement where you own the property but not the land it resides on is called a leasehold.Generally, the lease period varies from 30 to 99 years.

If you buy a leasehold property, its means lease of the property transfer from former owner (seller) to you (buyer). After completion of the lease period, not sure to renew the lease agreement. So before making an offer you’ll need to check –

  1. Take lease agreement paper from seller and check the lease period and how much time remain to over the lease period.
  2. How much service charges and other related charges paid by society / owner agreement time?
  3. What is the period of lease because period of lease might affect the property cost at the reselling time?

Majority of the housing options in Delhi, Mumbai, Noida Extension and Gurgaon are leasehold properties.

Advantages & Disadvantages of Freehold & Leasehold Properties

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Aadi

Aadi

Experienced Site Civil Engineer with a demonstrated history of working in the civil engineering industry. Skilled in AutoCAD, Revit, STAAD-Pro, Adobe Photoshop, and Civil Engineering. Strong engineering professional with a Bachelor of Engineering (B.E.) focused in Civil Engineering from BIT MESRA.

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