Freehold or Leasehold?


When you buy a property, one of the factors you may consider is whether the property is a freehold property or leasehold property. This means whether the property can be held by you indefinitely, for 99 years, or for 999 years. What happens after 99 years and 999 years respectively? They are returned to the state.

Most people jump at the idea of being able to hold the property indefinitely. However, what is important to note is that owning a freehold property does not actually mean you can hold on to the property for the rest of your life and pass it down to future generations. In fact, the government is still able to take back the property at any time if your property is in the way of the government’s plans to build highways or public infrastructure. A freehold property can also undergo a collective sale, more commonly known as an en bloc.

However, it is indeed true that a freehold property has higher value, holding all other factors constant. This can range from 10% to 20% or even more, depending on the specific property. The difference in price becomes more significant as the number of years remaining on the leasehold property decreases.

So… should you go for a freehold or leasehold property? Contact Us to learn more.