What is the difference between freehold & leasehold?

Question

What is the difference between freehold & leasehold?

Answer 1

Freehold you have bought and own the land your house is on.

Leasehold you rent the land your house is on, so will have to pay ground rents and service charges etc .

Answer 2

Free hold is when you are entitled to that property for ever and leasehold is 99 year ownership. This is mostly used in the United Arab Emirates. Reem Island is now Freehold and so are some properties in Dubai. There are some parts of Abu Dhabi that are leasehold. That means that you will be the owner of this property for 99 years.

Answer 3

The above answers, answer your question.  Personally I would avoid leasehold.

Answer 4

With freehold, the land and buildings, if there are any, belong to you.

With leasehold you have to pay a yearly rent for the lease or use of the land. This money goes to the person who owns the freehold of the land.At the end of the lease, you renegotiate the terms of the lease. If you do not manage to meet the demands of the person holding the freehold, you lose the buildings on the site.

Answer 5

Leasehold stinks... if your lease is up you have to negotiate new terms to lease the land.  I would advise not to buy this kind of property.

Freehold, or fee simple, means you own the land free and clear- nobody will come to you and ask to renew your lease on the land.