What is the difference between leasehold and freehold property?
Leasehold property – A lease grants the leasehold owner the right to use a property for a specified period of time (traditionally 99, 125 or 999 years) granted by a landlord to a tenant and recorded in a document known as a lease. Various obligations including legally binding promises, restrictions and regulations are created in the lease.
A Essentially, freehold ownership of property gives the owner (known as the “freeholder”) the right exclusively to occupy a piece of freehold property for an infinite period. Leasehold ownership of property gives the owner (known as the “leaseholder”) the right exclusively to occupy a piece of property for a designated period of years (known as the “term”), provided rent is paid on time and the rules of occupation (known as the “covenants”) are obeyed.
Leasehold property A lease grants the owner the right to use a property for a specified period of time (traditionally 99, 125 or 999 years) granted by a landlord to a tenant and recorded in a document known as a lease. Various obligations including legally binding promises, restrictions and regulations are created in the lease. Freehold property Freehold property is when you own a house outright and there is no landlord or management company to whom you owe obligations.
