Freehold Vs Leasehold Property: What’s Better In Bangalore?
When buying a home in Bangalore,, you will hear two important terms: freehold and leasehold. These terms tell you what kind of ownership you have over the property.
A freehold property is a property that the buyer owns both the land and the building. Once you buy it, it is fully yours. You do not need to pay any rent or renewal charges to the government or any authority. You can sell it, transfer it, or give it to someone in your will without asking for permission.
A leasehold property is a type of property where you own the building, but not the land. The land belongs to the government or a private developer. You get the right to use the land for a fixed number of years—usually 30, 60, 90, or 99 years. The leasehold property is an asset, but it comes with some conditions. You may need to pay a yearly ground rent and renew the lease when it ends.
| Place | Freehold Property | Leasehold Property |
| Ownership | You own both land and a building | You own only the building, not the land |
| Permission | No need to take permission to sell or transfer | Need permission from the landowner to sell or transfer |
| Cost | Usually more expensive | Usually cheaper |
| Renewal | No need to renew | Needs renewal after the lease period ends |
| Loan Approval | Easy to get home loan | It can be harder to get a loan |
| Control | Full control over property | Limited control due to lease terms |
In Bangalore, most apartments and villas from top builders like Prestige, Brigade, Sobha, and Puravankara are freehold. For example, a villa project in Whitefield or a luxury apartment in JP Nagar is usually a freehold property. You can sell or rent it anytime.
Some government housing projects in Bangalore, such as BDA flats or properties in areas owned by the defence or public sector, are leasehold properties. You will need to check the lease period and conditions before buying such a home.
Now that we know the difference between leasehold and freehold property, which one is better in Bangalore?
- For long-term stay – If you are planning to live in the home for many years or pass it to your children, a freehold property is better. You do not have to worry about the lease expiry.
- For resale and loan – It is easier to sell a freehold property and get a home loan from banks.
- For lower budget buyers – If you have a limited budget, a leasehold property may cost less. But always check the lease terms and renewal charges.
- Always check the property documents before buying.
- Make sure you know whether it is a freehold or leasehold property.
- If you are buying a leasehold property, ask how many years are left on the lease.
- Some leasehold properties can be converted into freehold by paying a fee. Ask the developer or local authority if this is possible.
Understanding the difference between leasehold & freehold property in India is important when buying a home in Bangalore. A freehold property gives you full ownership and peace of mind. A leasehold property is an asset, but it comes with limits.
If you want full control and easy resale, go for freehold. If budget is a concern and the lease terms are clear, leasehold can also work. Just make sure you get proper legal advice and check all the documents before buying.
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