What Is The Difference Between Freehold And Leasehold Property?
So you're looking to buy a house. You've done your research, set aside a deposit and now have the keys to your dream home. But there might be one thing that you aren't aware of – the difference between freehold and leasehold properties. These might not seem like important details until you start living in your new home, at which point it's too late! If you feel stuck in property issues, then always hire Melbourne property lawyers.
Freehold Property
Obviously, Melbourne property lawyers knows better how to deal the property issues legally. With freehold property, you own the land and the building. You have the right to sell it and pass it on to your heirs.
In exchange for this ownership, you are responsible for maintenance costs. You also have rights to sublet or make changes to your property unless these are restricted by a lease agreement.
Leasehold Property
Leasehold is a type of real estate that allows you to own a property, but not the land it sits on. The land is owned by someone else, and the owner sets up a lease for a certain period of time that grants you permission to use his or her land.
You have an option to purchase your leasehold at an agreed-upon price at some point during this time period, although there are many restrictions as well:
You must pay ground rent to the freeholder (the person who owns the land) every year. Ground rent can be either fixed or variable depending on what type of lease you sign at first; they will typically increase over time unless specifically set otherwise in writing before signing anything official with signatures from both parties involved in this transaction (i.e., buyer & seller).
What Is The Difference?
The difference between freehold and leasehold property is that, in the former, the land and buildings are owned by one person. The owner of freehold property has the right to use and benefit from an entire plot of land on which there are no restrictions or limitations.
In a leasehold property, on the other hand, there are rules governing what you can do with your home and how long you can stay in it without being ejected.
Conclusion
So, what is the difference between freehold and leasehold property? Freehold refers to a piece of land that belongs to you, whereas leasehold refers to a piece of land that belongs to someone else. But what does this mean in practical terms?
If you own freehold property (for example), then you have full ownership over the land and all of its resources. This means that no one else can take away your rights or access without your permission.
On the other hand, when it comes time for your lease agreement with an owner-builder company to expire, there are options for renewal or termination, depending on each individual situation. Always keep Melbourne property lawyers by your side to deal the property issues hassle-free.