{"id":579,"date":"2019-08-19T09:39:01","date_gmt":"2019-08-19T09:39:01","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=579"},"modified":"2024-01-18T14:13:24","modified_gmt":"2024-01-18T08:43:24","slug":"freehold-or-leasehold-property-the-difference-you-should-know","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/","title":{"rendered":"Freehold or leasehold property &#8211; the difference you should know"},"content":{"rendered":"\n<p><em>Homebuyers often go through a dilemma of thoughts when they come across terms like Freehold property and Leasehold property.<\/em>  <\/p>\n\n\n\n<!--more-->\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2019\/08\/shutterstock_75621091-1024x683.jpg\" alt=\"\" class=\"wp-image-580\" srcset=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2019\/08\/shutterstock_75621091-1024x683.jpg 1024w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2019\/08\/shutterstock_75621091-300x200.jpg 300w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2019\/08\/shutterstock_75621091-768x512.jpg 768w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2019\/08\/shutterstock_75621091-1568x1046.jpg 1568w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Freehold or Leasehold property <\/figcaption><\/figure>\n\n\n\n<p>Let us explain to you these basic terminologies along with their advantages and disadvantages in detail.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Freehold_Property\" title=\"Freehold\nProperty:\">Freehold\nProperty:<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Advantages_of_Freehold_Property\" title=\"Advantages\nof Freehold Property\">Advantages\nof Freehold Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Disadvantages_of_Freehold_Property\" title=\"Disadvantages\nof Freehold Property\">Disadvantages\nof Freehold Property<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Leasehold_Property\" title=\"Leasehold Property:\">Leasehold Property:<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Advantages_of_Leasehold_property\" title=\"Advantages of Leasehold property\">Advantages of Leasehold property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Disadvantages_of_a_leasehold_property\" title=\"Disadvantages\nof a leasehold property\">Disadvantages\nof a leasehold property<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.propertypistol.com\/blog\/freehold-or-leasehold-property-the-difference-you-should-know\/#Can_a_property_be_sold_on_the_basis_of_Power_of_Attorney\" title=\"Can a property be sold on the basis of Power of Attorney?\">Can a property be sold on the basis of Power of Attorney?<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freehold_Property\"><\/span><strong>Freehold\nProperty:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Freehold property means the property that you have\npurchased and you own complete rights on the same. There is no time limit until\nhow long you own the property unless and until you decide to sell it to someone\nelse. You and only you are the sole owner of the property.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Freehold_Property\"><\/span><strong>Advantages\nof Freehold Property<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<ul class=\"wp-block-list\"><li>Buyer is the sole owner.<\/li><li>The owner has complete rights on\nthe property and he can do whatever he wants with it keeping in mind the law\nand order and legal authorities.<\/li><li>It is a long-term investment.<\/li><li>You do not have the concern of a\nlease running out. The property is yours indefinitely.<\/li><\/ul>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_Freehold_Property\"><\/span><strong>Disadvantages\nof Freehold Property<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<ul class=\"wp-block-list\"><li>The maintenance and functioning of the building comes under your responsibilities list.<\/li><li>You have a responsibility to your local council and community to be a responsible homeowner.<\/li><li>Buying a freehold property can in some cases be more expensive than buying a leasehold property.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Leasehold_Property\"><\/span><strong>Leasehold Property:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Leasehold property means the ownership of the land is leased to the developer for a particular amount of time on which the property is built. The period varies from 30 to 99 years. In a leasehold property, the legal agreement happens with the landlord called a \u2018lease\u2019 that states the number of years the owner shall own the property and under what conditions. Leasehold is basically giving your property on rent for a particular period of time.<\/p>\n\n\n\n<p>A lease is a contract between the owner and the landlord. A lease defines your rights and responsibilities and the time period for which you will be given the property. Ownership of the property will return to the landlord when the lease ends. Majority of housing options in Navi Mumbai, Delhi, Noida Extension and Gurgaon are leasehold properties. <\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Leasehold_property\"><\/span><strong>Advantages of Leasehold property<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<ul class=\"wp-block-list\"><li>Leasehold properties\nare less expensive.<\/li><li>Owner has less\nresponsibility for repairs and maintenance.<\/li><li>Provides a home for\npeople with a short-term requirement.<\/li><li>There is a\npossibility of buying the leasehold property outright, through enfranchisement,\nor share of the freehold.<\/li><\/ul>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_a_leasehold_property\"><\/span><strong>Disadvantages\nof a leasehold property<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<ul class=\"wp-block-list\"><li>If your lease expires and if you\napproach your landlord for renewal, he is not obliged to renew the term of your\nlease.<\/li><li>The landlord has control over the\namount of service charge costs that you have to pay.<\/li><li>Your lease is subject to\nconditions that may limit the way you can use the property. For example,\nwhether or not you can have pets.<\/li><li>A short lease may prevent the\nresale of the property or your ability to get a mortgage.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_property_be_sold_on_the_basis_of_Power_of_Attorney\"><\/span><strong>Can a property be sold on the basis of Power of Attorney?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>If an individual\nwants to sell his property through power of attorney then there\u2019s a big NO. In\n2011, the Supreme Court held that transferring property title through General\nPower of Attorney is not valid.<\/p>\n\n\n\n<p>The law holds that a power of\nattorney is not an instrument of transfer in regard to any right, title or\ninterest in an immovable property but any genuine transaction carried out through\nGeneral Power of Attorney is considered valid under the law.<\/p>\n\n\n\n<p><strong>How to convert Leasehold Property to Freehold Property and its\nbenefits?<\/strong><\/p>\n\n\n\n<p>The process of converting a leasehold property to a Freehold property is very simple, you only need GPA (General Power Of Attorney), a clear sale deed and a NOC (in case the land is under mortgage or rent). Further, you need to pay a conversion charge to authorities.<\/p>\n\n\n\n<p>Before finalizing on buying a\nproperty, you should go through the legal documents thoroughly and understand\nthe status of the property. <\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#e0b98f;font-size:12px\"><em>Disclaimer: The views expressed above are for\ninformational purposes only based on industry reports and related news stories.\nPropertypistol does not guarantee the accuracy, completeness, or reliability of\nthe information and shall not be held responsible for any action taken based on\nthe published information.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homebuyers often go through a dilemma of thoughts when they come across terms like Freehold property and Leasehold property.<\/p>\n","protected":false},"author":2,"featured_media":586,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[26],"tags":[14],"class_list":["post-579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-real-estate","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference between Freehold Property &amp; 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