Difference between Freehold & Leasehold Property

You are now about to buy a home of your own and have started looking at properties. Freehold and leasehold are two terms that you often hear when you venture into real estate. It may seem like legal jargon to you but it’s important to know if the luxury apartment in Kerala you are to buy is freehold or leasehold. You should also be aware if there are any legalities associated with them. 

Land ownership and control are the two main factors that differentiate freehold and leasehold properties. As an owner, you have the absolute control to do what you wish with your home, assuming that you keep within the local planning rules. But in the case of a leasehold property, the ownership is given by the government for a tenure of 99 years. The leasehold can be extended to as high as 999 years for a price only if the owner, which is the State in most of the cases, wishes to extend the lease.

The no. 1 real estate portal in Kerala, luxurykeralaflats.com tries to shed some light on the difference between Freehold & Leasehold Property. Check out the differences... 

 

Freehold Property

When you purchase a freehold property like an independent house, you own the land it is built on and also the house. But when it comes to purchasing flats for sale in Kerala, as the owner of the apartment, you become a shareholder in the property. You can live there for as long as you desire. Along with that you will have the right to make alterations in the apartment or redo some parts of it. But if you bring about structural changes, you might have to take permission from authorities (especially for old buildings). In India, most houses and luxury apartments in Kerala are now being sold as freehold property.

Leasehold Property

If you have purchased a flat for sale in Kerala which is a leasehold property, you have the right to live there for a stipulated period of time. The buyer is not the owner of the property or the land it is built upon. You will have to pay ground rent to the owner or the leaseholder in this case. Once the set period in the lease expires, the ownership of the property is transferred back to the landowner. Majority of the leases are for a period of 99 years, but it can be extended even to 999 years. Many properties are given out for short-term leases as well. The owner will normally be responsible for maintaining the common parts of the building, like the entrance hall and staircase, as well as the exterior walls and roof. Leaseholders will have to pay maintenance fees, annual service charges. It is important to know the tenure of the lease as it will affect the value of the property. 

 

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