What is the difference between Freehold and Leasehold?

As a newbie in real estate/property world, I have zero knowledge in this industry. However, when people talk about property, the first thing I heard was is this property freehold or leasehold? Whenever people said this property is freehold, others will say okay that’s great. On the other hand, when you about to said this property is leasehold, others will said “huh? Leasehold ah? How many years who?” So, do you really think what’s the real difference between of them?



For what I know, freehold means when you purchase the property, you own the land as well. I can own it until the day I died and pass it to my children, grandchildren or even grand grandchildren. It is quite reasonable that most of the people will choose freehold rather than leasehold because they can own them for a long period.

However, there’s a thing is the government have the right to take back the land. Well, the case is very rare but there’s a possibility that we should aware.



Leasehold is a property that you own for a limit of time. Majority of the leasehold property is 99 years. After 99 years, government will take back the land and it depends on you whether you want to continue to stay at the property or move out. Of course, if you want then you need to pay.

Because of this kind of condition, most of the time developer will sell them with cheaper price, more spacious, more facilities to attract and convince the customer to buy them. We all know location is a very important factor to value the property. If your leasehold property is in strategic location, who knows, maybe your return on investment will even higher than freehold.


In conclusion, there are pros and cons on freehold and leasehold. At the end of the day, it is always depending on your decision. You need to understand what you really want.


Watch the video below for more info :


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