What Is Freehold Property vs. Leasehold Property?

Are you interested in owning a freehold property in Thailand? If you are, it’s essential to understand the different types of ownership available in Thailand. Freehold property refers to the outright ownership of both the land and the building on it. Freehold property ownership is permanent, without a time limit, whereas leasehold properties have fixed terms. 

What is a Freehold Property?

Freehold properties offer buyers complete ownership of the land and building. Long-term security and greater control are the benefits of freehold properties. This type of ownership allows for full autonomy in making alterations, selling, or passing the property down to heirs. It’s an ideal choice for those seeking stability, investment potential, and freedom. If you are seeking complete, indefinite control of your property, freehold is the best choice. 

A freehold property has no expiration date. As the owner, you can keep the property indefinitely, allowing you to plan for the future without concerns about the lease expiring. With freehold ownership, you have full ownership of both the land and any structures on it. This contrasts with leasehold ownership, where only the right to use the property is granted for a limited period.

What is a Leasehold Property?

A leasehold property is a form of temporary ownership over a piece of land. In Thailand, leasehold ownership lasts for 30 years. Leaseholders are required to pay an annual fee to maintain ground rent to the freehold owner. With leasehold ownership, there are restrictions on how the property can be used or modified. Upon completion of the ownership duration, extensions on leasehold ownership can be possible at a cost.

Key Differences Between a Freehold vs. Leasehold

Ownership Duration

The most significant difference between freehold and leasehold ownership is the duration. Freehold ownership is permanent. While leasehold ownership is limited to a set term, usually 30 years.

Control Over Property

Freeholders have the ability to make alterations and improvements to their properties. On the other hand, leaseholders may face restrictions. They may need to seek approval for changes or alterations made to the property.

Costs & Fees

Freehold ownership does not involve ongoing costs like ground rent or service charges. This can make freehold ownership cheaper over time.

Resale Considerations

The unlimited duration of ownership makes them more enticing to prospects. Freehold properties are also often easier to sell. They also tend to appreciate in value better than leasehold properties. 

From outright ownership, freehold properties are the most stable investment choice. They do come with a higher price tag due to transfer fees and taxes. Although compared to leasehold properties, freehold tends to appreciate in value. Additionally, freehold ownership does not require ground rent or service charges. It also grants complete control over property decisions, without needing landlord approval.

Discover Freehold Properties with Nova Real Estate

If you’re looking to invest in prime locations in Thailand, Nova Real Estate offers a selection of exclusive land in Pran Buri, providing the long-term security and growth potential of freehold ownership. The luxury pool villas in our private estate are ideal investment options, especially for those interested and looking towards Thailand’s thriving real estate market. Contact us today for more information.