20th, Apr, 2025

Difference Between Freehold and Leasehold Property in India

When buying a property in India, one of the first things you need to understand is whether it's freehold or leasehold. These terms might sound technical, but they directly affect your ownership rights, responsibilities, and future resale value.

In this article, we’ll explain the difference between freehold and leasehold property in India in simple terms, covering all the key details you need to know before making a purchase decision.

What is Freehold Property?

A freehold property means complete ownership of both the building and the land it's built on. You, as the buyer, have full rights over the property and can sell, rent, or transfer it without much restriction.

Key Features of Freehold Property:

• You own the land and the structure.

• No need to pay ground rent or renew leases.

• You can sell or transfer the property freely.

• You can even modify or reconstruct (subject to local laws).

Benefits of Freehold Property:

• Full legal ownership

• Higher resale value

• Easier to get bank loans

• More peace of mind for long-term living

What is Leasehold Property?

A leasehold property means you have rights to use the property for a fixed number of years, but the ownership of the land remains with the government or landowner (often development authorities like DDA, MHADA, etc.).

Common Lease Duration:

• Usually for 30 to 99 years

• Can be extended or renewed

Key Features of Leasehold Property:

• You don’t own the land – only the right to use it.

• You may need permission from the authority to transfer, rent, or modify it.

• Annual ground rent or lease rent may be applicable.

Planning to buy a home? Make sure you have all the right papers. Check out this must-read guide on documents required to buy property in India.

Can You Convert Leasehold Property to Freehold?

Yes, in many cases, you can convert a leasehold property to freehold, depending on the local rules and regulations. You usually have to:

• Pay a conversion fee

• Submit the required documents

• Get approval from the concerned development authority

This process adds value to the property and makes it easier to sell or transfer.

Comparison Table – Freehold vs Leasehold Property

Which is Better – Freehold or Leasehold Property?

From a user’s perspective, freehold property is generally better in the long term. It offers full ownership, flexibility, and higher resale value. However, leasehold properties may be more affordable initially and are common in areas developed by government authorities.

Not sure about your property’s worth? Learn how to accurately estimate it with our guide on calculating market value of property in India.

You Should Prefer Freehold If:

• You want complete control over your property

• You are buying for investment or resale

• You want easier financing

You Can Consider Leasehold If:

• The location is ideal, and conversion to freehold is possible

• You’re looking for a budget-friendly option

• You’re planning to live short-term or don’t mind the restrictions

FAQs about Freehold and Leasehold Property

Q1. Can I sell a leasehold property?

Yes, but it may require approval from the land authority, and buyers may hesitate due to the limited ownership period.

Q2. How to know if a property is freehold or leasehold?

Check the title deed or ask for property documents. You can also verify this with the local property registration office.

Q3. Is leasehold property safe to buy?

Yes, if it’s from a reputable authority and all papers are clear. But consider the lease duration and whether conversion to freehold is possible.

Conclusion

Understanding the difference between freehold and leasehold property in India is crucial before you buy a home or invest in real estate. While freehold properties offer full ownership and peace of mind, leasehold properties can still be worth considering if they suit your budget and needs.

Always check the property title and consult a legal expert if you're unsure. Making the right choice now will save you from complications in the future.