Land Rights

Land Rights

Land Rights (Who owns the Land?)

Freehold Property OR Lease Hold Property?


Lands ownership can be important while considering your property purchase. Land ownership are usually of two types freehold and leasehold properties. Ownership and control determine whether the land is freehold or leasehold. Ownership essentially is the situation where the owner has the rights to make changes in the property within the rules and regulations of the local authority. Usually leasehold properties are leased by the government or government bodies for a tenure of 99 years or 999 years which needs to be renewed after that period.

Leasehold Property:


  • In Leasehold property the customer is not the owner of the land parcel and can stay in the property for the period of the lease. 
  • However, the lease can be renewed by the authority after the stipulated period is over.
  • You are liable to pay a rent amount to the owner to use the premises.
  • Usually the leases are for 30, 60, 99 years. Sometimes it is even made for 999 years period.


Freehold Property:


  • Freehold Property is one in which the land belongs to the owner along with the house.
  • In cases of apartments, the owner of the apartment becomes shareholder in the property (cases of residential societies).
  • You live until you desire and have rights to make alterations in a freehold property.
  • Paperwork involved in sale of freehold properties is lesser as there is no need to take permission from the owner.
  • Freehold properties are costlier compared to leasehold properties.

Advantages of Freehold Property over Leasehold Property:

  • Free to alter and make changes as per wish of the owner without any permissions.
  • Annual rent is not applicable.
  • No restrictions or permissions required for selling the property.
  • Easier home loans with more loan amount is provided in freehold properties compared to leasehold ones.
  • Better growth rate in freehold properties compared to leasehold properties.

Converting a leasehold property to freehold:

Leasehold properties can be converted to freehold properties by means of sale deed, a general power of attorney and NOC (No Objection Certificate) from the owner or government body. This is however possible only if allowed by the government body or owner of the property

Difference between Leasehold and Freehold Properties:

Leasehold Freehold
Land owned by government, leased to an owner for a certain number of years Land belongs to the owner
Owner need to pay a certain amount to renew the lease after the lease period ends.  Ownership is with the owner and no renewal is needed.
For alterations and for selling the property the owner needs approval from the government. Free to sell the property and transfer the ownership.
Bank finance is harder compared to freehold property. For lease less than 30 years banks usually do not finance. Banks finance for freehold properties easily available.


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