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06-20-2007, 12:26 PM #1
Fixer Upper
- Join Date
- Jun 2007
- Location
- Michigan
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- 21
Leasehold vs Freehold
I was recently reading about buying islands in foreign countries. I am still confused by the concept of leasehold vs freehold, could someone explain it. Also is this the case with all properties in foreign countries or just unique properties like private islands.
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06-20-2007, 01:02 PM #2
Fixer Upper
- Join Date
- Jun 2007
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- Rocklin, CA
- Posts
- 43
A leasehold is a right to occupy for a period of time, it could be decades or as long as 99 years. After this period there is no ownership interest or renewal.
Freehold estate is regular ownership. The fee simple (or fee simple absolute) form of freehold ownership offers the most rights for the owner including the ability to own, occupy, sell, encumber, and will to heirs. Fee simple defeasible means there are some conditions on the deed to the ownership, for example not being able to sell, or having to use the property for a specific purpose.
I would recommend fee simple (preferably fee simple absolute) ownership as this type of property will be easier to sell or borrow against, and you will build real equity.Last edited by aprazma; 06-20-2007 at 01:11 PM.
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