There are two types of property ownership: freehold and leasehold. Some properties in tri county area are classified as “leasehold” land. A leasehold property involves the owner “leasing” the land for a range of 40 – 120 years; it is commonly 99 years. The opposite of leasehold is “freehold.” Freehold is outright ownership of the property without a time limit to ownership.

There are pros and cons to leasehold properties.
Pros

• Leasehold properties may be less expensive.
• You may sell your leasehold to someone else without the owner’s permission.

Cons

• You do not build equity in the land.
• The leasehold fee increases periodically.

If you are looking to buy or sell your home or property, feel free to call on of our agents to help you navigate the real estate buying and selling process.

Rodney McCoy 601.383.1019 rmccoy@rightsizerealty.com
Jamie McCoy 601.259.0461 jmccoy@rightsizerealty.com
Andrew Tyre 601.842.4270 atyre@rightsizerealty.com
Allen Wilson 601.985.9231 awilson@rightsizerealty.com
Paul Tyre 601.709.9002 ptyre@rightsizerealty.com
Dianne Nelson 601.421.7094 dnelson@rightsizerealty.com

References:
Gray, P. (June 2, 2015). What’s the Difference Between Freehold and Leasehold? Ludlowthompson. Retrieved from: https://www.ludlowthompson.com/property_advice/whats-the-difference-between-freehold-and-leasehold-28#:~:text=Leasehold%3A%20Method%20of%20owning%20property,land%20on%20which%20it%20stands.&text=Freehold%3A%20Outright%20ownership%20of%20the,to%20his%20period%20of%20ownership.

Mandell, J. (November 21, 2019). What is a Leasehold Property? REALTOR.com. Retrieved from: https://www.realtor.com/advice/rent/what-is-leasehold-interest-property/