What is the primary difference between freehold and leasehold ownership?

The primary distinction between freehold and leasehold ownership lies in the nature of ownership rights conferred. Freehold ownership grants the owner full ownership of the property indefinitely. This means that the owner has the right to occupy, use, and transfer the property without any time constraints, effectively owning the land and any improvements on it forever unless they choose to sell or otherwise dispose of it.

This contrasts with leasehold ownership, which involves leasing the property for a specified period as defined in a lease agreement. Under leasehold, the individual does not possess full ownership of the land but rather the right to use and occupy the property for the duration of the lease. Once the lease term ends, ownership reverts to the freehold owner or landlord.

Understanding this difference is crucial for anyone involved in real estate, as it affects rights, responsibilities, and potential financial outcomes associated with property investment.