what is the difference between freehold and leasehold property?

Q: what is the difference between freehold and leasehold property?

Hitesh, Gurgaon

24th September 2014

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Replies (6)

what is the Benefits of converting Leasehold to freehold property?

Sonia, Gurgaon

24th September 2014

Comment

1. The property holder becomes a full-fledged owner only by getting the sale deed of the property after getting it registered.
2. There is no period of years attached to the ownership.
3. Ground rent does not affect freehold property.
4. Property can transferred, sold or mortgaged
5. Banks and Financial Institutes are ready to offer loan against property.
6. Ownership rights are transferred to the purchaser.

Krishna, Gurgaon

24th September 2014

Is it possible to Convert Leasehold to Freehold Property?

Sonia, Gurgaon

24th September 2014

Comment

You can easily convert your leased property into freehold if you have the GPA (General Power Of Attorney), a clear Sale deed and a NOC (in case the land is under mortgage or rent) with you. In addition to this, you need to pay a conversion charge to the authorities as well for the change in status . In case you own a home built on leased land in Delhi,then there is good news for you. DDA has recently approved a proposal that states conversion from leasehold to freehold on the basis of registered Agreement to sell and GPA only. You can also get the property converted on the basis of house tax assessment or proof of permanent electricity connection in case of non-sanctioned building plan.

Krishna, Gurgaon

24th September 2014

Leasehold properties transactions are done through Power of Attorney (POA). Such property has a disadvantage which can cease on the death of the seller. If you are entering into such a transaction, ensure that you have a General Power of Attorney (GPA) as well as special, irrevocable POA, which will allow you to transfer the property. A Power of Attorney (POA) is in the nature of a grant or authorization. A Power of Attorney can be granted by or in favor of any person who is competent to contract. Depending on the nature of transaction, the wordings in the document are of utmost importance. The POA coupled with interest cannot be revoked, except with the prior consent of the Agent.
If you are entering into such a transaction, ensure you have POA for Leasehold which will allow you to transfer the property.

Krishna, Gurgaon

24th September 2014

Comment

In my point of view Freehold is better than leasehold , as in freehold you get property for life long but in leasehold, property get for certain contract period.

Krishna, Gurgaon

24th September 2014

Comment

A freehold property is a property which gives full legal rights to the owners to live and use the property. Most of the property in India is freehold, which means that ownership is transferable. A freehold property owner has the right to sell, transfer, renovate and repair the property. The freehold properties give more right and responsibility to the owner. The only disadvantage of this type of property is that the owner has to carry out repairs that may be required from time to time.

Nishant Pathak, Gurgaon

24th September 2014

Comment

hi nishant thanks for giving me wonderful information. I just want to know that which one is better freehold or leasehold?

Sonia, Gurgaon

24th September 2014

Leasehold Properties - Buying a Leasehold property means that you own just the building and not the land. You must pay a ground rent to your landlord. Often this landlord will be your local authority. In specific areas such as Delhi, the government owns most of the land and some of which is leased out. Leasehold properties are not freely transferable and the transactions are done through Power of Attorney (POA).

Nishant Pathak, Gurgaon

24th September 2014

Comment