Difference Between Freehold and Leasehold Property in India Explained

 Buying a real estate property is a complicated process that doesn’t conclude with making the payment and putting your name on the deed. In India, there are two types of property i.e., Freehold and Leasehold. In both properties, there are certain differences when it comes to their purchase, ownership, and sale.



Indeed, you read correctly: the types of property vary based on the rights that the purchasers will receive. In India, freehold and leasehold properties are the two most prevalent kinds. When buying real estate, it's critical to comprehend the differences between these two kinds of properties. Read further for more details on the two types of properties.


What is Freehold Property?

Freehold means you fully own the property and the land it's on, with no restrictions. You’re free to sell, lease, or pass it on however you like. Freehold property does not involve any ground rent and thus you will only be responsible for any additional costs, expenses, or charges such as renovation costs, maintenance and repair costs, etc


Benefits of Freehold Property

  • Right of Ownership

  • Property Control

  • No Costs Involved

  • No Costs Involved


Disadvantages of Freehold Properties

  • Higher Purchase Costs

  • Maintenance and Upkeep

  • Property Taxes and Insurance


What is a Leasehold property?

It is a type of property ownership in which the owner, or leaseholder, has the right to use the property for a specific period, according to the lease agreement terms. It's like having a business for a set amount of time without owning the land.

Benefits of Leasehold Property

  • Affordable Initial Cost

  • Prime Location Benefits

  • Good Future Value

  • Flexible Ownership


Disadvantages of Leasehold Properties

  • Limited Control Over the Property

  • No Benefit from Property Value Increase

  • Lease Renewal Costs

  • Annual Ground Rent




Key Differences Between Freehold And Leasehold Property


Key Point

Freehold Property

Leasehold Property

Ownership

Complete ownership of land and property

Ownership for a fixed period; land belongs to the landlord

Control

Full control to use, modify, or sell

Limited control; need permission for changes

Recurring Costs

No lease-related charges

May include ground rent, lease renewal, and maintenance fees

Duration

Permanent ownership

Time-bound ownership (e.g., 30, 60, 99 years)

Resale Value

Higher resale value over time

Value may reduce as lease period shortens

Investment Type

Long-term and stable investment

Better for short- to mid-term goals

Transfer Rights

Easily transferable or inheritable

May require landlord/authority approval

Location

Maybe in less central areas

Often in prime or urban locations

Initial Cost

Usually more expensive

More affordable to purchase


How to Choose Between Leasehold and Freehold Property?

If you are planning to buy a property, choose freehold if you want full control, long-term stability, and ownership without restrictions. It’s ideal for those looking to settle down, build equity over time, and have complete freedom to modify or sell the property. Many flats for sale in Mira Road offer just that, peace of mind, full ownership rights, and long-term value in a well-connected and growing locality. On the other hand, choose a leasehold if you are starting a business or need a house for a limited period. Leasehold properties are more affordable, often located in prime areas, and suitable for short-term use.
Location: Mumbai, Maharashtra, India

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