What Is Known As A Freehold Property In India?

So, a freehold property is the one where the society/owner/ residents' welfare association has ownership over the building and also over the land on which the building is standing in perpetuity. You buy a freehold land property in India, through a lottery or an auction. The overall completed project will eventually include the entire cost of the land combined with the ultimate cost of units.

Hence, a freehold property is any real estate which is legally free from all kinds of hold, other than the owner no one has any hold over the property. The owner of this type of property has all the rights to use for any reason, in harmony with the rules of where the property in India is located. There is not much of paperwork needed for the sale of any freehold property as it is not essential to request permission from the state. Freehold properties are a lot more expensive than any leasehold property due to this reason.

Under the law of Land Acquisition, the government has all the rights of acquiring every kind of private land for the motive of industrialization, urbanization of any private land, developing the infrastructural facilities after rightly compensating the landowners of those private properties.

A freehold land title indicates to a property title by which the landlord of that land has ownership over if for perpetuity. Also, the freehold land title ownership does not have any limits in time for the owner of the land and its beneficiaries.

• Even though the leasehold properties are much cheaper than the freehold properties but the freehold property owners don’t need to pay annual ground rent.
• Freehold property owners have total ownership rights over the property and do not have any restriction for transferring it any further. However, a leasehold property is much safer as the land titles and all verified and clear.
• If you own a freehold property you will be the in charge of everything. Hence, you will be the one maintaining and taking care of your property without having to depend on anybody else. Whereas, if you have a leasehold property then the responsibility of maintaining the property lies upon the state, developer or any of its responsible authority. You don’t need to worry about its maintenance.
• A freehold property is much more stable than leasehold property. Hence, in the long run the value of a freehold property will increase much more than leasehold property.
• If you own a leasehold property then all the flats and apartments are leasehold, due to the reason that the builder owns the land. And the lease can be extended if both the parties agree on the point of extending the lease.

Yes, generally banks are much more willing to provide loans for freehold properties as compared to any leasehold property. The reason behind this is, investing on a freehold property is said to be safer because the registration is already done of a freehold property and also expectedly, the value will increase with time. Banks are mostly ready to sanction even a larger amount of loan for a freehold property which has a higher amount of market value.

So, these are some of the common questions which people have about freehold properties. You can buy a freehold property in India as it will give you much better prices in the future, also finding a mortgage against any freehold property is much easier than any leased property.