FREE OR LEASEHOLD - WHAT SAY!

Sep 02 2017 : The Times of India (Pune)

Sanjay Gupta Times property





When purchasing a property, ensure that you make an informed choice. Ask yourself, is it a leasehold or freehold property?

While buying or investing one's hard-earned money in the real estate sector, it is prudent for the buyer to ascertain whether the property is freehold or leasehold. While both have their pros and cons, the onus lies on the buyer to understand the nuances of the same. Devendra Garg, an advocate, informs, “The main difference between a freehold and leasehold property is the land ownership and control. Normally, people prefer to buy a freehold property (house, flat, land, shop or other types) because the owner has undisputed right in the title of property. As per the law, the owner of a freehold property can transfer or sell the ownership of the property to anyone.Also, through registration of the property by the sale deed, one can either sell it or buy freehold property. On the other hand, leasehold property owners have limitations to the use of property.“Prateek Agarwal, a home-owner, says, “If you buy a freehold property, you're responsible for maintaining your property and the land, so you'll need to budget in for these costs. You don't have to worry about the lease running out, as you own the property outright.“