Freehold vs leasehold property
Ownership period, ground rent, consent, renewal, finance, and resale compared.
Freehold (所有権) gives perpetual ownership at a higher price; leasehold (借地権) lowers the entry price but adds ground rent, consent requirements, and finance and resale constraints.
Key points
- Freehold: perpetual ownership subject to law and tax, at a higher acquisition price.
- Leasehold: lower entry price but ground rent and consent for renewal, rebuild, or transfer.
- Leasehold can constrain financing and resale, and a declining fixed-term impairs value.
- Old-law and fixed-term leaseholds behave very differently — get specialist review.
The core trade-off
Freehold (所有権) is perpetual ownership subject to law and tax, at a higher acquisition price — the conventional, financeable, easily resold form. Leasehold (借地権) is a right to use land owned by someone else: it can lower the entry price, sometimes substantially, but you pay ground rent and typically need the landowner’s consent to renew, rebuild, or transfer, which constrains financing and resale. Old-law leaseholds may carry strong tenant protections but complex valuation, while fixed-term leaseholds end after a defined term and lose value as the remaining term shortens.
How to decide
Freehold is the default for most buyers who want easy financing and resale. Leasehold can make sense for a lower entry price in a desirable location, but only after specialist review of the ground rent, consent terms, remaining term, and whether a lender will finance it and a future buyer will want it. Never buy a leasehold property without that review — the risks are in the fine print of the land-lease terms, not the listing price.
Key points to carry away: Freehold: perpetual ownership subject to law and tax, at a higher acquisition price; Leasehold: lower entry price but ground rent and consent for renewal, rebuild, or transfer; Leasehold can constrain financing and resale, and a declining fixed-term impairs value; Old-law and fixed-term leaseholds behave very differently — get specialist review. Use the linked guides and calculators for the full decision, and confirm anything material with the lender, a licensed broker, a judicial scrivener, or a tax accountant before you act.
Who this is for
- Buyers weighing this specific decision
What this is not
- A one-size-fits-all recommendation
- Never buy a leasehold property without specialist review of ground rent, consent, remaining term, and financeability.
Frequently asked questions
What is freehold?
Ownership without a fixed land-lease expiry, subject to law and tax.
What is leasehold?
A right to use land owned by another person, subject to ground rent and consent.
Is leasehold always bad?
No, but financing, consent, ground rent, renewal, and remaining term all matter — get specialist review.
What is fixed-term leasehold?
Leasehold that ends after a defined term; declining remaining term can impair value and finance.