When a building and the land it is situated on are owned entirely by the same person, the property is said to be freehold. This is what is freehold on a property. Here are some key points related to freehold property:
Ownership Rights: The owner has the right to use the property for any legal purpose and can transfer ownership without needing permission from any other entity.
Duration: Ownership is perpetual, meaning it can be passed down to heirs or sold at any time.
Advantages: Owner will have:
Full control over the property.
No ground rent or service charges.
Easier to sell due to fewer restrictions.
Disadvantages:
Generally more expensive than leasehold properties.
Higher initial cost due to ownership of both land and building.
Freehold properties are often preferred for their flexibility and long-term security. I hope you get an idea of what is a free hold property.
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What is the difference between leasehold and freehold property?
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Freehold property, as the name suggests, is a property which is legally free from anyone’s hold besides the owner. Any freehold property is usually bought via an auction or a lottery. The property can be used for any purposes within the rules and regulations laid down by the municipal bodies and governing authorities.
A freehold property is easier to buy because of lesser paperwork than a leasehold property. However, a freehold property is priced at a higher side than leasehold property.
What are the advantages of freehold property?There are many advantages of a freehold property such as:
- The owner of a freehold property does not have to pay annual ground rent
- The owner of a freehold property has complete ownership of the property
- The buyer of a freehold property has complete charge over property rights and maintenance
- The value of a freehold property usually increases in the long run
- It can be inherited by upcoming generations
- Banks generally approve home loans on a freehold property easily and quickly than a leasehold property
- The owner of the freehold property owns the land on which the property is built
You can convert a leasehold property into a freehold property by paying conversion charges to the relevant authorities and by acquiring a clear sale deed, general power of attorney, and No-objection certificate (if applicable).
Note: The government can take the freehold land for the purposes of industrialisation, development of infrastructure facilities or urbanisation of the private land, after compensating the affected land owners suitably under Land Acquisition Law.
I hope you have a clear idea of what is freehold property and what are the advantages of owning a freehold property.
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Authors Of The Question
What is Freehold Property?
Md. Taufiq
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2021-04-15T18:41:19+00:00 2024-10-01T09:44:14+00:00Comment
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