Could someone please explain their understanding of the differences between freehold & leasehold?
Allan.
Freehold means you purchase the business/property and leasehold means you lease the property/business for x number of years.
Freehold – you own everything! The land, the air above (to a point) the land below (to a point)
Leasehold – you have the right to enjoy the land, the air above (to a point) and the land below (to a point) BUT oneday all you have put on the land that cannot be removed without destroying the fabric of the land [and there are many cases arguing this point] belongs to the owner of the land.
So enjoy (in the meantime)
Hm… Ok – it’s just that a couple of weeks ago I was looking at some land, that the RE listed as freehold. This (and several other things they mentioned) gave me the impression you can do what you like on freehold land – without government approval – is this right?
Also, the average house in Sydney/Newcastle areas – are they freehold or leasehold? Reason I ask is, when I looked up the definition of the two words, it said you own the land forever with freehold (and pay zero rates) but at the same time, the government has no responsibility to provide services to that property. Whereas with leasehold, the opposite is true and the government can reclaim the property whenever they please (to build a new road, etc.).
So… Does that mean that the average home is leasehold!?
Allan.
With leasehold you are leasing the property of a third party.
Most property in NSW and QLD is freehold – you can do what you want with it.
The overrider is that the government has the legal power to take possession of any property it sees fit. Although in practice this is rarely the case. If the government decides to build a major freeway and your house is in the way then in most cases you will receive compensation equal to the market value of your home.
Also freehold doesn’t give you the right to anything under your land such as coal, oil, gold, etc.
Hi Dingo,
So you’re telling me that if I find gold, when I’m digging in my backyard, its not mine? Or if I strike oil, I have no claim to that either?
Thats not fair! [}
]Sue [
]Be careful not step on the flowers when you’re looking at the stars
With leasehold you are leasing the property of a third party.Most property in NSW and QLD is freehold – you can do what you want with it.
Ok – what seems odd to me then – I’ve seen land advertised and in the short description, the RE has made a point of mentioning it is freehold…
Why would they bother, if *most* land is freehold anyway!? (Strange breed those Real Estate agents.)
Thanks!
Allan.
From what I understand of freehold and leasehold is that freehold means the land is yours and you have right over it to a certain extent. For example, if you were digging a hole and you struck oil, your land is then classified crown land and the government compensate you for your land and you have no claim over the oil.Same goes for gold or any other precious resource. Oh yeah, freehold properties are bound by local council restrictions.
Leasehold is like renting a house for your business. You can do almost anything with the inside of the place but you still have to do what the owner wants. I just hope we don’t go along the same lines as the UK where there a lots of houses you buy but they are on a leasehold. That means you can do whatever you like to the house but the lease has a time period on which you can renew after that or buy the freehold title to it, which usually costs and arm and a leg!
That is what I can gather from what my parents have told me and other peoples experiences.
Cheers
Steph.Success is 1% inspiration and 99% perspiration.
Dicliem!
In all the certificates of title that I have for land in NSW there is in the second schedulde the words saying that the land is subject to “reservations and conditions in the crown grants”.
Now her maj, long time ago, when making the crown grants decided to keep the minerals, oil and all other yummies under the ground for herself.
So in a nutshell even if you own the land someone can rip the minerals out of it!
Sorry, no need for the metal detector – unless you have the mining rights.
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