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What is the difference between freehold and leasehold property?

Freehold leasehold Property
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What is the difference between freehold and leasehold property?

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A ‘freehold’ property means that both the building and the land it stands on is owned until such time as the owner decides to sell it or dies. ‘Leasehold’ means that the land on which a building stands is not owned outright by the buyer. Instead, it is leased from the person who owns the freehold rights at a nominal ‘ground rent’. The lease is typically for 99 years. At the end of the term, the land and the building or buildings on it revert to the freeholder. You should note that most lenders will not offer a mortgage when the lease has only a few years to run and you should check with us if the length of the lease is less than 75 years.

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A ‘freehold’ property means that both the building and the land it stands on is owned until such time as the owner decides to sell it or dies. ‘Leasehold’ means that the land on which a building stands is not owned outright by the buyer. Instead, it is leased from the person who owns the freehold rights at a nominal ‘ground rent’. The lease is typically for 99 years. At the end of the term, the land and the building or buildings on it revert to the freeholder. You should note that most lenders will not offer a mortgage when the lease has only a few years to run. For share to buy the remaining lease must be 50 years or above.

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Ans. A freehold property consists of the house/building you are purchasing along with the land upon which it is built. The ownership in freehold properties is for an indeterminate length of time. A leasehold property is that which consists of the house/building only but not the land upon which it is built. It is that form of property in which the holder of the interest has the right to use or occupy, but not to sell or transfer the property. The holder of the property occupies the property for a specified period of time. After expiring the date, the property holder has to return it to the person who owns the land.

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