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Property Information: Whenever you go to buy property in big cities, you definitely hear about freehold and leasehold property. But, do you know what it means and what is the difference between these two types of property? Because, there are different rules regarding these two types of properties.
Since buying or building a house is one of the biggest investments in life, it is very important to know which property is better to buy, freehold or leasehold. Let us tell you what is the difference between these two types of properties?
What is the difference between freehold and leasehold property?
– Freehold property is completely owned by an individual, whereas leasehold property is leased by the government for a fixed period. In such a situation, freehold property is better than leasehold in terms of rights.
-Freehold property can be easily sold, transferred and used in any way. But, unlike this, permission has to be taken from the original owner or the government before building on a leasehold property. Freehold property is passed down through generations. After the leasehold property expires, it passes to the government.
– A person can easily get bank loan on freehold property. But loan from bank on leasehold property is available on the condition that the lease period is more than 30 years.
Which property is better to buy?
Property experts believe that buying freehold property and leasehold property both depend on the needs of the individual. Buying freehold property is good for those who want complete ownership of the property. But, for those who want to stay in one place for a fixed period, leasehold property is a good option.
Can the lease period be extended?
Generally the lease period on a leasehold property is up to 99 years but in most cases it can be extended. In such a situation the extension of the property becomes 99 years or more.
