Freehold or Leasehold Property

 

Looking to buy a flat in Kerala? It’s good to be aware of real estate terms like Freehold and leasehold which are two forms of legal ownership of a property. Before buying, it’s important to know if the apartment in Kerala is freehold or leasehold property and also if there are any legalities associated with them. 

A freehold property is a property or land, which is owned or inherited for life. When a property is acquired under the lease, it is termed as Leasehold property. Prime real estate portal in Kerala, luxurykeralaflats.com helps you to know the difference between freehold and leasehold properties. 

The two main factors that differentiate freehold and leasehold properties are land ownership and control. As an owner, you have the absolute control to do what you wish with your property which lies within the local planning rules. Whereas in a leasehold property, the ownership is given by the government for a tenure of 99 years. The lease 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 it.

Check out the differences between Freehold & Leasehold Property. 

Freehold Property

When you are buying 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 a luxury flat in Kochi, you only become a shareholder in the property in which the flat is located. You can live there for as long as you desire. You only have the right to make alterations in the apartment or redo some parts of it. For doing structural changes, you might have to take permission from authorities (especially for old buildings). In India, most houses are now being sold as freehold property.

Leasehold Property

If you have purchased a flat in Kerala as a leasehold property, you will have the right to live there for a stipulated period of time. The buyer cannot be considered as the owner of the apartment or the land it is built upon. You will have to pay ground rent to the owner or the leaseholder in this case. After the set period in the lease expires, the ownership of the property is transferred back to the landowner. Many of the leases are for a period of 99 years, but it can be extended even to 999 years. There are a few properties which are given out for short-term leases as well. 

Usually, the owner will be responsible for the maintenance of the common parts of the building, like the entrance hall and staircase, exterior walls and roof. Leaseholders will have to pay maintenance fees & annual service charges. The tenure of the lease will affect the value of the property. 

Generally, freehold properties are more expensive when compared to leasehold properties. Check out luxurykeralaflats.com to buy flats in Kerala. Contact us for more details.