In this article, we are going to state the difference between leasehold and freehold properties matters land. Many people know of the two but it’s hard to understand or define the difference.
What Is A Leasehold Property?
Well, leasehold land applies to a situation whereby land is sold to a person but they pay some dues maybe yearly, or the land or property is on lease for a certain number of years eg 99 to 100 years.
A good example of leasehold properties is whereby a person buys property like a floor in a building. In such a situation you can be many people under one piece of land with each person holding their units in the form of floors on the apartment (building).
The leasehold property in that scenario can be, the owner of the land shares the freehold documents with the people who have bought the apartment units and this is known as “share of freehold”.
What Is A Freehold Property?
Freehold property can be defined as a property that is (free from hold). This means that the property has no holding charges and ones its bought the initial price stands for everything and the property is entirely transferred to the new owner.
A freehold land makes the owner enjoy the right to do anything with the property provided its inline with the rules of the local community or area.
With the above definition, it’s now clear the difference between the two and at Fanaka Real Estate we ensure that we offer our clients land which is freehold so that you can be sure you are investing in a clean piece of land which do not have any hidden charges.
NB: Most commercial pieces of land are leasehold rather all commercial use parcels are termed as leasehold in most cases, freehold mostly applies to residential or in land used for farming.
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