REAL ESTATE BASICS: WHAT IS A FREE HOLD PROPERTY?

A free hold property land is brought through property auction or lottery. Free hold property island free
from the hold of any entity except the owner. Hence, the owner of such land enjoys the ownership forever
and can use the land for any purpose by local regulations and where it is located. 

Sales of such freehold properties do not require authorization from the state. Hence it requires lesser
paperwork. However, freehold property is more expensive to purchase than leasehold property. Freehold
property is inheritance, there are no regulations on the rights of the property owner, to further transfer the
property. 

In the freehold property, there is an encumbrance to the title of the property. In freehold property, the
owner of the individual unit pays for maintenance charges. Freehold property can be inherited by a legal
guardian. The freehold estate can be transferred by registration of sale deed. In freehold land, the title
owner has no limit in time for the landowner and its beneficiaries.

According to the Land Acquisition Law, the government has the right to acquire all types of private lands,
including freehold lands land for industrialization, development of infrastructure facilities, or
urbanization. After redeeming the affected landowners. If you buy a freehold property, you also own the
land it was built on, along with the house.

 When you buy freehold property like an apartment, the homeowner is served as a shareholder in the
property. Many houses in India are sold as freehold properties, even apartments are sold on lease. Buyers
are evolving with time and they are more confident in acquiring a property that is freehold.

Freehold property owners are eligible for home loans

Banks are willing to give home loans for freehold properties. Freehold property is the safest investment,
as the registration of freehold property is completed. Banks are also sanctioning higher loans amounts for
freehold property with a higher market value.

Freehold land as an asset

For income tax filing, it is necessary to show actual assets. Fixed Assets could be furniture, machinery, or
an office building, etc. Freehold land and buildings are also fixed assets. 

Leasehold property

A leasehold property is affordable than a freehold property, ownership rights are limited after the lease
expires. Once the lease gets expired, the ownership of the property is returned to the original owner.
Subsequently, buyers can purchase a leasehold property by converting it to freehold property. 
Generally, buyers prefer to buy a freehold property because the price of the freehold property increases
with time. However, it's easier to get a mortgage against the freehold property, as compared to that of
leased ones. In the case of leasehold property, the ownership will be retained. The developer has the
authority to construct flats on the land.

If you wish to convert a freehold property into leasehold property through a proper documentation
process. Freehold property is a promising investment. As the buyer doesn't have to pay rent on freehold
property, unlike leasehold property.