Understanding the Difference Between Leasehold and Freehold Land in Kenya

Introduction: In this article, we aim to clarify the difference between leasehold and freehold properties concerning land in Kenya. While these terms are commonly known, understanding their differences can be challenging.

Section 1: Leasehold Properties

1.1 What Is A Leasehold Property?

A leasehold title deed refers to a situation where land is sold to an individual with ongoing dues, either yearly or through a lease lasting a specific number of years, e.g., 99 to 100 years.

1.2 Examples of Leasehold Properties:

A prime example of leasehold properties is when an individual purchases a floor in a building. In such scenarios, multiple individuals can coexist under one piece of land, each holding units in the form of floors within the apartment (building).

1.3 Share of Freehold Concept: In some cases, the owner of the land shares the freehold documents with those who have purchased apartment units. This arrangement is known as "share of freehold."

Section 2: Freehold Properties

2.1 What Is A Freehold Property?

A Freehold property is defined as a property that is "free from hold." This means there are no holding charges, and once bought, the initial price covers everything, and the property is entirely transferred to the new owner.

2.2 Rights and Privileges with Freehold:

Freehold land grants the owner the right to do anything with the property provided it aligns with the rules of the local community or area.

Section 3: Clarifying the Differences Between Freehold and Leasehold land

3.1 Financial Implications:

· Leasehold: Involves ongoing dues and potential share of freehold.

· Freehold: Single purchase price covers all.

3.2 Ownership Flexibility:

· Leasehold: Offers limited control.

· Freehold: Provides absolute ownership.

3.3 Popular Use Cases:

· Leasehold is common in commercial properties.

· Freehold is prevalent in residential or farming lands.

Section 4: Fanaka Real Estate's Commitment

4.1 Why Freehold Matters:

· Ensuring transparency and assurance.

· Eliminating hidden charges.

4.2 Commercial vs. Residential Land Dynamics:

· Most commercial parcels are leasehold.

· Fanaka Real Estate focuses on Freehold for its clients.

Conclusion: Making Informed Choices

In conclusion, the above definitions make it clear that the difference between leasehold and freehold land is significant. At Fanaka Real Estate, we prioritize offering our clients freehold land, ensuring they invest in a clean piece of land with no hidden charges.

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