Freehold ownership has become a popular type of ownership in both residential and commercial real estate. It is a legal concept that grants an owner of a property the right to possess and benefit from the property for an indefinite period of time. It is an ideal type of ownership, as the owner has indefinite rights to the piece of property and will not be discriminated against when it comes to making decisions about the land.
Freehold vs. Leasehold Ownership
The major difference between freehold and leasehold ownership is that a freehold owner has complete ownership over the property, while a leasehold owner is actually leasing the property from another party. Under a leasehold arrangement, the leaseholder does not have as much control over the property. The leaseholder typically has to abide by the terms of the lease agreement and cannot make changes to the property without the landlord’s permission.
To put it simply, freehold is when you own a property outright, while leasehold is when you rent a property from a landlord. The benefit of freehold ownership is that you have complete control over the land and can make decisions about the future of the property with much more freedom than you would have as a leaseholder.
Understanding Covenants and Rights of Freehold Ownership
When it comes to freehold ownership, understanding covenants and rights is essential. Covenants are agreements between two or more parties that bind them to specific rules and regulations. For example, a freehold owner of a property may be subject to a covenant that states they must keep the property in a specific condition and repair any damage to it caused by themselves or a third party.
Another important aspect is the rights of freehold ownership. This includes the right to any profits from the land, the right to transfer the ownership, and the right to exclude other people from the property. It is important to understand these rights and how they may affect any decisions you make for the property.
Modern Examples of Freehold Ownership
In modern times, freehold ownership has become increasingly popular. It is often used by residential and commercial real estate investors and developers to gain control over the property. All levels of government also use freehold for government lands, and many universities utilize freehold ownership for their campus properties.
Another example of freehold ownership is found in the agricultural field. Many farmers purchase land and gain control over it through freehold ownership. This allows them to make decisions about their land, without the constraint of a lease agreement.
Conclusion
Freehold ownership is a popular form of ownership that has grown significantly in recent years. It grants an owner the right to claim indefinite ownership over a piece of property, and allows them to make decisions about their land without being restricted by a lease agreement. Understanding your rights and covenants associated with freehold ownership will ensure you make the most of your investment.