Freehold-Leasehold What's the different?

Freehold ownership means owning a property, including the building and land, indefinitely, without time restrictions. You absolutely own it and are free to make changes, such as altering walls or adding extensions. However, freehold ownership comes with the responsibility for all aspects of the property, from its structure to its function, which is a significant drawback. Freehold properties require a much higher initial investment and ongoing maintenance responsibilities. Despite this, freehold ownership offers substantial benefits beyond complete ownership and the freedom to modify the property, including the potential for significant capital appreciation.

Leasehold ownership means owning a property for a specific period of time, but not owning the land on which the property sits. Leaseholds come with a lease agreement, a document detailing the length of the lease and any restrictions. Leaseholds generally require less upfront cost, especially for condominiums, which are often affordable forlimited budget buyers and provide access to communal facilities. However, leaseholders have less control over the property and are responsible for its upkeep until the end of the contract, or they may face fines. Limitations and restrictions, such as pet ownership rules, can affect a leaseholder's freedom. On the other hand, leaseholders typically do not have maintenance responsibilities or structural repair costs.