What is the difference between lease and freehold property. What are the drawback of buying a leased property
Leased property is not for sale but you can rent it for agreement time.You will never be owner of property.Some leased properties for longer term like 20 years or more so the money you are paying is rent for the use of property.Freehold has no obligations and you are sole owner of property and you don’t have to pay any maintenance or more charges.
Drawback of buying a house on lease is that you have to pay a huge markup for leasing a house for particular time period. Some societies are offering on lease houses but still there would be some criteria like possession will be given after completing the half of the payment or after 2 years you can get the possession.
Regards, Shehryar
I studied a little on the free hold and lease hold property some time ago and got to know that free hold property is sold to the purchaser for indefinite time period, or you can say on permanent basis; whereas lease hold property actually remains in possession of the first owner and the purchaser gets it for a specific time period - say for 20 years or 30 years.
We find lease hold term more frequent in government properties that are offered to the purchasers for specific bracket of time (often 30 to 100 years) and after that the government acquire that property/land again.