Buying a property with a leasehold association signifies possession of the constructing or unit, however not the land it occupies. The land is leased for a selected interval, typically a long time and even centuries, from the freeholder (landowner). A standard instance is an condominium in a high-rise constructing the place the person unit homeowners maintain leaseholds whereas the land beneath belongs to the constructing’s company or one other entity.
Decrease upfront prices typically make leasehold possession extra accessible than freehold, notably in prime areas. This affordability will be engaging to first-time patrons or these in search of property in costly city facilities. Traditionally, leaseholds had been prevalent in dense city areas the place land possession was concentrated. This follow allowed for larger growth and housing density. Leasehold buildings additionally enable the freeholder to keep up sure controls over the aesthetics and administration of the property, contributing to general consistency and worth.
