New Launch - India Real Estate Report 2026.

What is Leasehold Property?

Leasehold property in real estate refers to a type of ownership where a buyer purchases the right to use and occupy a property for a fixed period, but does not own the land it is built on. The land is owned by a freeholder (landowner), and the leaseholder has rights only for the duration of the lease agreement.

How Leasehold Property Works

In a leasehold arrangement:

  • The freeholder (landlord) owns the land
  • The leaseholder (buyer) owns the property for a fixed term
  • Ownership rights return to the freeholder after the lease expires (unless renewed)
  • Lease terms can range from 30 years to 999 years

Key Features of Leasehold Property

  1. Fixed Ownership Period

    • Property rights are granted for a specific time
    • Common lease terms: 99, 125, 250, or 999 years
  2. Ground Rent and Charges

    • Leaseholders may pay annual ground rent to the freeholder
    • Maintenance or service charges may apply in apartments
  3. Approval Requirements

    • Certain changes may require freeholder approval
    • Subletting rules may be restricted

Leasehold property is a common ownership model in urban real estate, especially for apartments and commercial spaces. It provides access to prime locations but comes with time-bound rights and certain conditions set by the landowner.

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