🏡Freehold vs Leasehold

"Freehold" and "leasehold" are terms commonly used in property law to describe different types of property ownership:

 

Freehold:

 -Freehold ownership, also known as fee simple ownership, represents the highest form of property ownership.

-When you own a property as a freeholder, you have full ownership rights to both the land and any buildings or structures on it.

-Freehold ownership is typically indefinite and does not have a set expiration date.

-As a freeholder, you have the right to use, modify, and sell the property as you wish, subject to local laws and regulations.

 

Leasehold:

-Leasehold ownership refers to a situation where a person or entity (the leaseholder or tenant) holds the right to use a property for a specified period of time under a lease agreement with the owner (the freeholder or landlord).

-Unlike freehold ownership, leasehold ownership is limited by the terms of the lease agreement, which specifies the duration of the lease (the lease term) and any conditions or restrictions on the use of the property.

-At the end of the lease term, ownership of the property reverts back to the freeholder unless the lease is renewed or extended.

-Leasehold properties are common in situations such as apartment buildings, condominiums, and commercial properties, where individual units are leased to tenants rather than sold outright.

 

In the United States, properties purchased come with freeholder rights. This means that buyers not only have the right to own and use the property for their lifetime , but they can also pass on the ownership of the property to family heirs or successors through inheritance or other means , ensuring that the family can have the right to perpetual ownership and use of the property. This allows the family to have a constant rental income from the property, providing an additional option for family financial planning , which is definitely worth it.

 

(Below is Chinese Version)