February 17, 2023

What Are the Differences Between Freehold Villa & Leasehold Property ?

Leasehold Vs Freehold Property in Maharashtra - Major Differences .

What Is a Freehold Villa Property ?

A freehold villa property is a type of real estate that many people find appealing due to its combination of modern amenities and classic living. This type of property typically includes a single-family home along with land, making it an ideal choice for those who are looking for more space or a more rural setting. 

In some cases, these properties may also include additional buildings such as stables or sheds.

For those interested in buying a freehold villa property, there are several factors to consider before making the purchase. It’s important to understand what the local laws and regulations are surrounding the use of this type of real estate and if there are any restrictions on how it can be used. 

Additionally, potential buyers should research future repair and maintenance costs associated with owning this kind of property since they can sometimes be quite expensive.

What Is Freehold Property ?


  1. Freehold property is a real estate term which refers to the ownership of land and any buildings on it. 
  2. It is a type of tenure where the owner holds an absolute title to the property, meaning that it is not subject to any other person or entity’s claim. 
  3. This form of ownership provides for exclusive possession, use and transfer of property without restrictions.


  1. When looking at freehold property, it’s important to understand that ownership does not always mean outright possession. 
  2. Owners may be required to pay certain fees for maintenance or services, as well as any outstanding mortgages or liens on the property.


  1. The most obvious advantage of freehold property is that the buyer has complete ownership over the land and any building located on it. Nowadays many luxury villas come under freehold property.
  2. This means that whether you’re investing in rental properties or simply buying your own home, you have total control over what takes place on the land. As the owner, you are able to make all decisions about how the land should be used and who can access it.
  3. The key benefit of freehold land is that it offers much greater stability than other types of real estate transactions.


  1. One of the main drawbacks of owning freehold property is the financial burden involved such as, “Can you call the land as your own ?” 
  2. Moreover, all repairs & maintenance are solely on the homeowner and can be expensive, if you don’t have any savings set aside for such costs. 
  3. Additionally, if you wish to make changes to your property or expand it in any way, all associated fees will be entirely your responsibility as well.
  4. Another disadvantage of owning freehold property is that you may not have access to certain communal amenities or services that another form of ownership could provide such as a shared swimming pool or laundry facilities.

What Is a Leasehold Property ?


  1. Leasehold property is a form of real estate ownership that allows an individual or business to rent or lease a piece of land, building or other physical asset from another party. 
  2. It is important to understand the different aspects of leasehold ownership and how it works if you are considering buying or renting this type of property.


  1. The terms of each leasehold agreement that must be adhered to by both parties throughout the life of the lease are different, but typically include,
    1. Rent payments, 
    2. Maintenance of responsibilities
    3. Additional obligations 
  2. During this time, all rental payments are made directly to the owner or landlord who holds title on the property. 
  3. The landlord owns both legal and equitable interests in their leased estate; however they do not have exclusive control over it when it is being leased out.


  1. Leasehold property is a type of ownership that offers many advantages, particularly for those looking to purchase a home on a budget.
    1. Firstly, leasehold properties are typically cheaper than freehold properties, making them an affordable option for first-time buyers. 
    2. Secondly, the initial outlay is often much less compared to the amount of money required to purchase a freehold land outright.


  1. One issue with leasehold property is that at the end of the lease term, you have no guarantee that your rights as an owner will be renewed by the landlord or freeholder. 
  2. This means that if you choose to purchase leasehold property, your rights as an owner could be terminated at any point during or after expiration of the tenancy agreement. 
  3. Additionally, many leases contain clauses which stipulate restrictions on what alterations and modifications can be made to the leased premises without prior consent from either party.

What Is a Rented Property ?

Renting property is becoming ever more popular.

Rental housing is a property that is lived in by someone other than the owner and for which the tenant pays the owner a rent that was agreed upon by both parties.

Whether you’re just starting out in your career and need an affordable place to live, or you’re looking for a change of scenery without the hassle of buying a new house.

Renting can provide the perfect solution but, “Can you call the land as your own ?”. 

What Kind of Properties Cannot Be Freehold ?

  1. Types of properties that cannot be bought as a freehold include
    1. Government-owned land
    2. Utility services land used in electricity, gas or water supply networks
  2. These types of lands are usually held in trust by local authorities for public use or managed by a state-appointed organization on behalf of the government. 
  3. Meanwhile, common areas such as parks and beaches may also be subject to special regulations that prevent them from being sold off as individual parcels of land – meaning they can’t become part of a private party’s ownership either.

Can Leasehold Property Be Converted into Freehold Property ?

The answer is Yes – it’s possible to convert your leasehold property into freehold. 

The process of converting your leasehold property into freehold is known as ‘enfranchisement’.

It involves making an application to the landlord (or ‘freeholder’) with an offer to buy out the remaining term of the lease. If accepted, you’ll become a freeholder and gain full ownership of your home.

This can be very useful if you plan to own a property such as a Khandala villa 

Which Properties Are Preferred More by the Buyers, Leasehold or Freehold ?

  1. Leasehold properties come with a lease agreement that sets out your rights and responsibilities for a fixed period of time. 
  2. Leasehold titles are often acquired from housing associations or local authorities and provide an affordable option for first-time buyers. 
  3. On the other hand, freehold titles provide full ownership over your property without any restrictions. 
  4. This strengthens your position as you can change or extend the existing building without any interference from third parties.

In terms of popularity, it appears that freehold titles attract more attention than leasehold ones due to their lack of restrictions and long-term security they offer.

Comparison Between a Freehold and a Leasehold Property

Criteria Freehold Property Leasehold Property
Land Ownership The term “freehold ownership” refers to the ownership of both the property and the land. Leasehold ownership only applies to the property, not the land on which it is built.
Time Frame A freehold property owner owns the land for an indefinite period. However, leasehold ownership is only temporary because the property reverts to the landlord when the lease expires.
Cost of Ownership Freehold properties are more expensive because they include the cost of the land as well. Leasehold properties are less expensive because they are purchased on a lease.


  1. In conclusion, freehold villas and leasehold properties have significant differences that should be taken into consideration when making a property investment. 
  2. Freehold properties are typically more cost-effective in the long run, but will come with larger upfront costs. 
  3. Leasehold properties can offer more flexibility in terms of location and capital expenditure, but their long-term costs may be higher than those associated with freehold investments. 
  4. Ultimately, it is important to weigh up all available options before deciding on a property investment.

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