What is the difference between lease hold and free hold?

What’s the difference between freehold and leasehold? With freehold, you own the property and land. With leasehold, you own the property for a fixed period of time but not the land it is built on.

What is free hold lease?

Leasehold. Freehold. Land belongs to the state, leased to owner for a certain number of years. Land belongs to the owner. At the end of the lease period, owners must pay to extend the lease.

Is freehold better than lease hold?

Cost. Freehold is often more expensive than leasehold at the outset. However, it’s worth doing a long term comparison, as although the freehold may cost more upon buying it, leasehold buildings often come with ground rents, service charges and even admin fees.

How does lease hold work?

With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless you can extend the lease. If this is the case, you own the property, but not the land it sits on.

What is free hold property?

Freehold Property. : Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations.

What is lease hold property?

Leasehold property means, if you have purchased a leasehold property, you have the right only to stay for a particular period of time. You must pay the ground rent to the owner or the leaseholder of the property, once the lease period is expired, the property rights will go back to the owner.

Does freehold mean no mortgage?

Owning the freehold of a property means that you own it outright, including the land on which it’s built – although that’s subject to any mortgage you have taken out. If you own a freehold by way of a mortgage, you won’t own the freehold outright until the mortgage is paid.