Financial benefits of investing in freehold property
Buying a piece of property can be a hassle at times especially when you are not aware of all the nuances you must know before striking a deal. Though there are many things to keep in mind while buying any property, one of the key things to check is the property ownership type. It could be freehold or leasehold.
Freehold ownership gives you full freedom to use your property the way you like it. There will be no restrictions with regard to buying and selling, and you don’t need any permission from the government authority to sell your property.
Freehold property offers complete ownership rights over both the land and the structures on it. The property owner has the freedom to use, sell, transfer, or lease the property as per their discretion. There are many financial benefits of buying a piece of freehold property. Here we take a look at some of them:
Freehold property is generally considered a better long-term investment due to the perpetual ownership rights it provides. The absence of lease restrictions allows owners to capitalise on property appreciation and leverage its value for financial gains.
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Financing freehold property is comparatively easier as the ownership rights are absolute. Banks and financial institutions are more inclined to provide loans for freehold property, often offering lower interest rates and flexible repayment terms.
Adhil Shetty, CEO, Bankbazaar.com, says, “In some cases, home loan interest rates may be lower for freehold property compared to leasehold property. Also, the loan amount on freehold property could be higher. The reason is simple, lenders consider freehold property as less risky
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