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Leasehold vs Freehold Property: Differences & Conversion

What Is Freehold Property?

What Is Leasehold Property?

Difference Between Freehold and Leasehold Property

Most buyers prefer freehold property over leasehold property for obvious reasons. Freehold property transfers entire ownership of a property, along with the land as well. It is also a good investment if you consider reselling in future.

Here in the following table, you will find the differences between a freehold and leasehold property.


Freehold Property

Leasehold Property


Buyer becomes the ultimate owner of the property and enjoys rights of the same.

The State or Government remains the owner of the property on lease.


An owner has rights to modify, transfer, mortgage and resell the property.

A lessor owns rights to use, transfer, and mortgage the property but may need the concerned authority's approval.

Ownership Duration

Has no duration as this is a permanent ownership transfer.

Has a specific duration according to the contract, which is renewable.

Cost of Acquisition

This can be expensive.

Relatively cheaper, but lease renewal costs are usually higher.


Easier to mortgage.

Relatively difficult to mortgage.

Annual Rent or Tax

Property tax

Lease rent


An owner has rights to modify the property only except for structural changes, which will require the permission of a higher authority.

A lessor doesn’t have rights to make any modification to the property.

How to Convert a Leasehold Property to a Freehold Property?

Documents Required to Convert a Property From Leasehold to Freehold

What Kind of Properties Cannot Be Freehold?

Which Is Better - Freehold Property or Leasehold Property?

Frequently Asked Questions