Mahernosh Humranwala, partner, Tatva Legal, explains the difference between a free-hold property and a lease-hold property. A free-hold property means the owner has absolute, unrestricted right over the property, while a lease-hold right is a restricted right, with the lessor of the property still holding some rights with himself. Most of the property in India is freehold, which means that ownership is transferable. A freehold property owner has the right to sell, transfer, renovate and repair the property. The freehold properties give more right and responsibility to the owner. Buying a leasehold property, on the other hand, means that you own just the building and not the land. You must pay a ground rent to your landlord. Often this landlord will be your local authority.
