Choosing between freehold and leasehold property can be difficult, especially if you don’t know the basics of what each kind of ownership entails. Here are the main differences between freehold and leasehold property, so you can choose the right one for your needs.
What is a lease
A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party it’s called a lease and It guarantees the lessee, also known as the tenant, use of the property and guarantees the lessor (the property owner or landlord) regular payments for a specified period in exchange.
What is a freehold
Freehold is when you own your home outright. You are in total control of it, including what is done to it and who lives there. It can be bought or sold at any time and is the most popular way to acquire a house. The main disadvantage with freeholds is that they will require more upkeep costs than leaseholds as you have to pay for repairs and maintenance costs yourself. A third party would usually take care of these on behalf of homeowners under a leasehold agreement. If the homeowner defaults on their mortgage repayments, they may forfeit their freehold title which could result in them being evicted from their property if the terms of their mortgage state that it is due to be repossessed by the bank if payments aren’t made.
How to decide
The cost of house construction in Bangalore can vary depending on who you decide to employ for your project. If you are looking for a little help with your decision, here are some questions to ask yourself: How many rooms do I need? Is my budget within reason? What type of design should I be looking for in order to meet my needs? If any of these questions made it easier for you to decide, then good luck and happy house building!
Dangers of being in the wrong type of home
If you don’t know much about the differences, it may sound like construction in Bangalore is a house construction cost in Bangalore. For example, if you buy a leasehold house that has no chance of future development, then your initial investment will have been wasted as soon as you move into it.