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Know the Difference Between Freehold Property and Leasehold Property

Blox Social
Posted on
Feb 6, 2023

The residential and commercial sectors remain the most discussed regarding real estate property. However, in the following blog, we have something different to offer as we touch on the aspects of Freehold Property and Leasehold Property.

Before understanding their nature, benefits, and comparison, let us know their definition and concept in detail. 

Freehold Property

As the name suggests, in a freehold property, an owner, society, or residents' welfare have complete ownership and control over the land where they reside. If you have purchased the above property, there is no stipulation on possession, especially when it comes to time, with the buyer having complete authority. 

In this case, the buyer has complete control over the property and its usage, keeping in mind the regulations of the residing locality. Nonetheless, let's look at the pros and cons of owning them.


  • Less time-consuming when it comes to selling/leasing the property.
  • You have the right to make personal alterations and renovate.
  • The buyer is answerable only legally. 
  • Free from expenses such as ground rent, service charges, and other charges.
  • The complications are fewer, with complete authority assured.


  • These types of properties are more expensive.
  • Higher maintenance charges.
  • Added responsibility when dealing with outside forces such as neighbours, legal authorities, and surrounding construction sites coming up. 

Leasehold Property

It is a property where the buyer has ownership for a stipulated time, ranging from 30 years to even as high as 99 years. The purchaser has no control over the land that resides with the original owner, which in most cases is the government and their agencies who provide resources to builders and developers to construct apartment buildings on a leasehold basis. 


  • Limited responsibilities.
  • There are fewer maintenance costs, with the owners dealing with repair, renovation, and damage.
  • Better affordability rates.


  • The occupant must pay ground rent, which will increase as time passes.
  • There are restrictions if the individual wishes to customise/personalise the house.
  • Leasehold properties cannot be sub-let.

Freehold Property vs Leasehold Property 

Basis Freehold Property Leasehold Property 
1. Ownership The property owner has full ownership of the land, no questions asked. In this case, the individual’s ownership is time-bound. 
2. Rights The owner has all the rights to their property, enjoying the status of ultimate authority. The lesse is entitled to use the house and its utilities without involvement in any decision-making related to selling, renovation, or repairs.
3. Maintenance and other costs  These are borne entirely by the freehold owner.  The property owner's responsibility, especially when it involves a considerable amount. 
4. Time period  There is no time period regarding ownership of property.  These properties are not owned but leased for a period of mostly 99 years. 
5. Restrictions There are no restrictions on guests/visitors, hosting gatherings, and renting out. There is a high possibility the lessor may impose specific rules and regulations on the lesse.
6. Approvals required Few approvals, given the nature of having complete authority.  Required approvals from the government or their agencies.

What types of properties are preferred by buyers?

In the Indian real estate market, buyers prefer investing in freehold properties, courtesy of their benefits like authority, ownership, and rights, compared to a leasehold property, in which the land either belongs to the state government or developer who, with the help of a builder/developer leases out apartments for a specific period. 

Can a Leasehold property be converted into Freehold property?

Every state has a different set of rules. However, in the case of the Nation’s capital Delhi case, you can convert a leasehold property into Freehold. Given the powers of being a freeholder, one should opt to convert if offered. On the other hand, the other way round, which means moving from Freehold to Leasehold, attracts a fee. 


The key difference between freehold property and leasehold property lies in the ownership and duration of possession. Freehold property is owned outright by the owner and is not subject to any time limitations or restrictions. On the other hand, a leasehold property is owned by the lessee for a specified period of time and is subject to certain conditions and restrictions imposed by the lessor.

Freehold property is generally considered a more secure and valuable investment than leasehold property, as it offers full ownership rights and greater control over the property. However, leasehold property may be more affordable and accessible, particularly in urban areas where freehold property may be scarce or prohibitively expensive.

When considering purchasing a property, it is important to consider the advantages and disadvantages of freehold and leasehold ownership, as well as any associated costs and legal requirements. Seeking professional guidance from a real estate agent or legal expert can help ensure a smooth and successful property transaction, regardless of whether it is a freehold or leasehold property.

Hopefully, this blog has delivered its purpose in making your decision easy when choosing between Freehold and Leasehold property. 

Real Estate