Purchasing property involves a lot of formalities, legal procedures, and terms. Often those purchasing properties come across terms such as freehold and leasehold properties. The best real estate company in Hyderabad will provide valuable bargains in property sales.
The main difference between the two kinds happens to be land ownership as well as control. As an owner, a person can do whatsoever with his or her property, while keeping local planning rules in mind. It is good to know the differences between the two purchases while dealing with real estate in Hyderabad.
Leasehold and Freehold have been acknowledged as being the two forms of legal ownership of a property: the freehold property happens to be a property or land, which is owned or inherited for life. A property that has been acquired under the lease is referred to as termed as Leasehold property.
Buying in full for an indefinite period of time, covering both lands as well as property as well is referred to as freehold property. On the other hand, an arrangement whereby the right to hold any property for a temporary period to another person or perhaps entity is referred to as leased property. In other words, the property is transferred on a lease basis to another person.
To understand the difference between leasehold property and free property, the terms can be split into two terms, and thus there is more clarity in the meaning of them. The estate being bought is free from the hold of any entity, besides the owner. So, the owner enjoys will have complete ownership and can use the land for any purpose (sell, renovate, or transfer), while keeping the local regulations in mind. In case of planning to sell such a property, it will require any legal or government consent, and thus less paperwork attached. Freehold assets are rather more expensive as compared to leasehold assets.
Leasehold Property:
Judging by the name the owner of the land on which the property is built is leased for a certain amount of time to the concerned developer.
In the case of purchasing an apartment in a housing complex, it might be possible that the land on which it is being built is leased. The future of such properties after the lease period is over is in fact rather uncertain. Much depends upon the amount paid by society to renew the contract. The buyer needs to avail of a loan from banks to buy a leasehold property.
Converting a leasehold into a freehold property
It is possible to easily convert one’s leasehold property into freehold in case a person has the GPA (General Power Of Attorney), a clear sale deed, and a NOC (in case the land happens to be under mortgage or rent). In addition to this, a person requires to pay a conversion charge to the authorities. It is possible to get the property converted based on house tax assessment or proof of permanent electricity connection in case of the non-sanctioned building plan.
Developers’ view
A developer has to concentrate on controlling costs while developing a project.
Which properties are preferred more by the buyers, leasehold or freehold?
The purchase of a freehold property is more preferred as compared to the leasehold property as freehold is considered to be more stable and likely to increase in value on a longer-term basis. The best real estate Company in Hyderabad can provide worthy sales to the customer as far as properties are concerned.
