Real estate investment is one of the best investments preferred by long-term investors to gain higher returns in the future. Whether you are a new investor in the real estate market or an old investor, now is the best time to invest in real estate as prices are comparatively lower. It is a great time to buy Ready to Move flats in Jodhpur because of its fast-growing development and lower property prices. If you want to invest in Property in Jodhpur, commonly known as the blue city, the first step is to hire the top-rated Real Estate Developer in Jodhpur, who will guide you throughout your investment journey. Whether you want to Buy Villa in Jodhpur or invest in the Top Residential Projects in Jodhpur, at ashapurna buildcon limited, you will get the best deal.
But the most vital thing is to research before investing. As every investment needs research, real estate investments also need a lot of research and study. If you invest without studying the market, you will surely have the worst nightmare of your life. Most investors get confused about certain terms used by the real estate agent, and two such terms are Freehold Property and Leasehold Property. Before discussing the differences between Freehold property and Leasehold property, let us understand what exactly they mean.
Leasehold Property:
A leasehold property is where the owner gives possession of the property to someone for a specific time. Basically, it means the property tenure where one party buys the property possession for a particular time. And after the lease period is over, the possession of the property again shifts to the owner. Generally, the owner of a leasehold property is the government, which give the property for 30-99 year to the buyer for a specific work. The value of the leasehold property is cheaper than the freehold property.
Freehold Property:
As the name suggests, freehold property is free from any hold. The owner enjoys full ownership, and the consent of the state is not needed. Here the owner can use the land in any way he like keeping in view the local laws. And hence when the owner wants to sell or rent the property, there is much less paperwork as the owner does not need anyone’s consent or approval to rent or sell the property. This is the reason the value of the freehold property is much more than the leasehold property.
Difference between the Freehold property and Leasehold property:
- BENEFITS:
Both the Freehold property and Leasehold property have certain benefits. The main advantage of freehold property is that you can easily sell it or give it on the lease without any complication. The owner has the right to control every part of the building and is not answerable to anyone. Also, when a person buys a freehold property, he can alter and modify the property according to his needs and requirements.
On the other hand, in a leasehold property, you have limited responsibility, and you do not have to empty your pocket for the major repair that the property needs. You can also stay away from the constant maintenance charges.
- Owner rights:
In freehold property, the owner has absolute ownership. The owner of the freehold property can transfer the property without any restriction. The owner has the absolute title of the property, and he can transfer it through the registered sale deed. If you buy a freehold property, you own the property till your death or until sold to someone else. He also has unrestricted right to alter, modify or change the property according to his needs and requirement. He can sell, rent or lease out the property when he wants to.
In a leasehold property, the lessee is not entitled to the ownership or title of the property but can stay or use the property for the leased period. The lessee cannot use the property after the period of lease is over. The lessee can use the house and all its features as agreed by the lessee and the lessor. However, they cannot sell, rent, lease out, or make structural changes without the lessor’s permission. Therefore in the freehold property, the person who buys it has the absolute ownership right, and in the leasehold property, the lessee cannot claim the ownership of the property.
- Documentation:
Following are the documents needed to be submitted while applying for the conversion of leasehold property to freehold property.
- Copy of lease deed or sub-lease deed;
- Copy of sale of agreement;
- Copy of power of attorney;
- Possession proofs like property tax receipts;
- Demand/allotment letter given by the government;
- No objection certificate, if needed;
- General Power of Attorney (GPA).