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Kuldeep Singh   26 November 2021

Disadvantages of freehold property

I have one 300 sq yards independent house of government body.I am going to change my leasehold house (99 year's lease and i paid whole lease) to freehold house. is it right decision from my side or not ? 

I do not know about what will be the disadvantages of freehold property in future ? 

Plz suggest....



 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     26 November 2021

Disadvantages

  • You are responsible for the functioning and maintenance of the building and land.
  • You have a responsibility to your local council and community to be a responsible homeowner. If the building falls into disrepair, you are too noisy, or your rubbish is a nuisance to the neighbours you are legally and financially obligated to take action.
  • Buying a freehold property can in some cases be more expensive than buying a leasehold property.
1 Like

Anaita Vas   26 November 2021

A freehold property is one, where the owner/society/residents’ welfare association owns the building and the land that it stands on outright, in perpetuity. A freehold is generally bought through an auction or lottery. The completed project, thus, will include the cost of the freehold land incorporated in the final cost of the units.

Meaning of a freehold property is a property that is legally ‘free from hold’ of any entity other than the owner. 

The only disadvantage of freehold properties is that they are more expensive. Since an individual owns both, the land and the property, to have complete control over it, the cost incurred on it increases. Thus, such properties might be difficult to be purchased by individuals who are used to staying in flats or apartments, where they just own the property and therefore, pay a lower price.

Freehold land is costlier than leasehold land.

For freehold land you may need to pay more down payment for blocking the unit.

 

Regards,

Anaita Vas

Kishor Mehta (CEO)     26 November 2021

Freehold property is definitely more advantegeous.


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