#freehold and leasehold

[j-august]

'Give a man the secure possession of a bleak rock and he will turn it into a garden,' wrote the agriculturalist Arthur Young. 'Give him a nine years' lease of a garden and he will convert it into a desert.'

Paul Lay, Providence Lost

[propertymomsg]

HDB Condominium & MOP (Minimum Occupancy Period) in Singapore

Get a comprehensive guide on HDB condominiums and the Minimum Occupancy Period (MOP) in Singapore. Understand the regulations, eligibility criteria, and benefits of owning an HDB condominium. Learn about the MOP, its duration, and the restrictions associated with selling or renting out your HDB unit. Stay informed and make informed decisions when it comes to HDB condo ownership in Singapore.

[grantsawsolicitor]

Leasehold Enfranchisement Law Reform

The Leasehold and Freehold Reform Act 2024 introduces significant changes to lease extensions and freehold purchases. Key reforms include 990-year lease extensions, eliminating marriage value from price calculations, and an online calculator for premiums. These reforms aim to simplify processes and reduce costs for lessees. Although the act is passed, it requires secondary legislation to be enforced, with most changes expected by 2025-2026. For more details, visit https://grantsaw.com/leasehold-enfranchisement-law-reform

[georgeshutcheson]

Understanding Freehold and Leasehold Properties

New Post has been published on https://www.fastaccountant.co.uk/freehold-and-leasehold-properties/

Understanding Freehold and Leasehold Properties

In the world of land and property, it is essential to grasp the crucial distinctions between freehold and leasehold properties. While both types have their unique characteristics, understanding the difference between them can significantly impact your investment decisions. Freehold properties provide individuals with absolute ownership of the land and the buildings on it, granting them permanent ownership rights. In contrast, leasehold properties entail a limited ownership period, with the land belonging to someone else, typically a landlord, for a predetermined lease duration. Exploring the nuances of freehold and leasehold properties is vital to making well-informed decisions in the dynamic and ever-changing real estate market.

Understanding Freehold and Leasehold Properties

Freehold Properties

Freehold properties refer to properties where the ownership of both the land and the buildings on it is granted indefinitely. In other words, when you purchase a freehold property, you are buying full ownership and control of the land and the property for an unlimited period. This type of property ownership is often seen in countries like the United States, Canada, and Australia.

Definition of Freehold Properties

Freehold properties can be defined as properties that are owned outright by an individual or entity without any limitations on their rights to use, sell, or transfer the property. The owner has complete control over the property and can make decisions regarding its use, modifications, or disposal without needing permission from anyone else. This type of property ownership offers the highest level of control and autonomy to the owner.

Advantages of Freehold Properties

One of the main advantages of owning a freehold property is the sense of security and freedom it offers. As the owner, you have the peace of mind knowing that you have full control over your property and can make decisions regarding it without any external interference. Additionally, freehold properties tend to appreciate in value over time, making them a valuable investment.

Another advantage is that you have the flexibility to modify or renovate your property as you wish, without any restrictions from a landlord or a lease agreement. This freedom allows you to personalize your space according to your preferences and needs. Furthermore, owning a freehold property means you are not subject to regular rental payments to a landlord, thereby eliminating the financial strain of monthly rent.

Disadvantages of Freehold Properties

Despite the numerous advantages, there are also some drawbacks to owning a freehold property. One of the main disadvantages is the higher upfront cost associated with purchasing a freehold property compared to a leasehold property. Freehold properties tend to be more expensive because you are buying both the land and the building outright. This can make it more challenging for first-time buyers or those on a tight budget to enter the housing market.

Another disadvantage is the responsibility for maintenance and repairs falls solely on the owner of the freehold property. Unlike leasehold properties where these costs are often shared among the tenants or managed by a landlord, freehold property owners bear the full financial burden of maintaining their property. This can be costly, especially for major repairs or replacements.

Leasehold Properties

Leasehold properties, on the other hand, are properties where the ownership of the land is granted for a limited period, typically through a lease agreement. In this arrangement, the land is leased from the freeholder or the landowner, and the leaseholder has the right to use the property for the duration specified in the lease. Leasehold properties are commonly found in countries like the United Kingdom, where the land is often owned by a larger entity or the Crown.

Definition of Leasehold Properties

Leasehold properties can be defined as properties where the land is owned by a separate entity (the freeholder) and leased to the homeowner for a specified period. When you purchase a leasehold property, you are essentially buying the right to occupy and use the property for the duration of the lease agreement. However, you do not own the land itself.

Advantages of Leasehold Properties

One of the main advantages of leasehold properties is the lower upfront cost compared to freehold properties. Since you are not purchasing the land outright, the initial investment required to acquire a leasehold property is usually lower. This can be appealing for those who want to enter the property market but have a limited budget.

Leasehold properties often come with various amenities and common areas, such as parks, swimming pools, or gyms, which are shared among the residents. These shared facilities add value and convenience to the property, providing a more enjoyable living experience. Additionally, the responsibility for maintaining these communal spaces is typically handled by a management company or a residents’ association, thus relieving the individual leaseholders of the financial and administrative burden.

Disadvantages of Leasehold Properties

One of the significant disadvantages of leasehold properties is the limited control and autonomy for the leaseholder. Since the land is owned by someone else, there may be restrictions on how the property can be used or modified. Any alterations or renovations may require permission from the freeholder, and they may impose certain conditions or charges. This lack of control can be restrictive and limiting for those who wish to customize their property according to their preferences.

Leasehold properties are also subject to ground rent and service charges, which are additional costs incurred by the leaseholder. Ground rent is an annual payment made to the freeholder as a form of rent for the land, while service charges cover the maintenance and upkeep of shared areas and amenities. These ongoing expenses can add up over time, and leaseholders need to budget for these costs alongside their mortgage payments.

Differences Between Freehold and Leasehold Properties

Ownership: The fundamental difference between freehold and leasehold properties lies in ownership. Freehold property ownership grants full ownership and control of both the land and the buildings, while leasehold property ownership only grants the right to use and occupy the property for a limited period.

Duration of Ownership: With freehold properties, the ownership is indefinite and does not expire. On the other hand, leasehold properties have a specified lease term, usually ranging from 99 years to as little as 10 or 20 years.

Rights and Responsibilities of Owners: Freehold property owners have the freedom to make decisions regarding their property without needing permission from anyone else. They also bear all the responsibilities and costs associated with maintaining and repairing the property. In contrast, leasehold property owners have certain restrictions and may require the freeholder’s permission for alterations or renovations. They also share the responsibility and costs for maintaining communal areas and amenities.

Costs and Expenses: Freehold property owners are not subject to annual ground rent or service charges, as they fully own the land and the property. On the other hand, leasehold property owners have to pay ground rent to the freeholder and service charges for the maintenance of shared spaces.

Renewal and Extension: For freehold properties, there is no need for renewal or extension, as the ownership is indefinite. Leasehold properties, however, require renewal or extension of the lease once the initial term expires. This process may involve additional costs and negotiations with the freeholder.

Sale and Transfer of Property: Selling a freehold property is relatively straightforward, as the owner has full control over the property and can enter into a sale agreement without any restrictions. Leasehold properties, on the other hand, require the freeholder’s consent for the sale or transfer of the property. This can add an extra layer of complexity and potential delays to the process.

Mortgage and Finance Options: Freehold properties are generally easier to secure financing for, as the ownership is considered less risky. On the other hand, leasehold properties may be subject to more stringent mortgage requirements, as the ownership is limited and the property’s value may decrease over time as the lease term shortens.

In conclusion, understanding the difference between freehold and leasehold properties is crucial when considering property ownership. Freehold properties provide full control and autonomy to the owner, with the potential for long-term appreciation. Leasehold properties, on the other hand, offer a more affordable entry into the property market but come with certain limitations and ongoing expenses. Ultimately, the choice between freehold and leasehold properties depends on individual preferences, financial capabilities, and long-term goals.

[varshatomar25]

[leaseholdservices]

Seize Your Space: A Journey to Buy Your Freehold Rights

Unlock property freedom with Leasehold Valuation. Our expert team guides you through the process of buying your freehold, ensuring a seamless and empowered ownership experience. We specialise in navigating complexities and maximising the value of your property investment. Choose Leasehold Valuation to embark on a journey of securing your space and unleashing the true potential of your property.

[dealacres]

Freehold Property vs Leasehold Property

A few terms that confuse most home purchasers are “freehold” and “leasehold”. All in all, their meaning could be a little more obvious. Are there any legal issues related to them that a home client ought to know about? What is the difference between them? and which one is better?

To Read More Click Here

[alwaysalreadyangry]

trying to explain leasehold and freehold in the UK to an italian colleague at work yesterday and ended up at “if it’s leasehold you are a little serf on the lord of the manor’s land. if it’s freehold you are the lord of your manor.”

like, this country is so fucking stupid. what do you mean there’s a 400 year lease on the land? why are there service charges then? and who is going to own it whenever the lease runs out? who is this mysterious person who will still have a claim on it in 400 years’ time???????

[propertymomsg]

A Day in the Life of a Local Resident near Pinetree Hill : Property Mom 

Living near Pinetree Hill offers a unique blend of tranquility and adventure. Each morning begins with breathtaking sunrises casting golden hues over the hill’s lush landscape. Residents often start their day with a walk along scenic trails, relishing the fresh mountain air and the occasional sighting of local wildlife. Mornings are followed by local markets bustling with fresh produce and artisan goods, reflecting the community's commitment to sustainability. Afternoons are spent tending gardens or volunteering in conservation efforts to preserve the hill's natural beauty. Evenings are a time for gathering around a fire pit, sharing stories under the starry sky, and appreciating the peaceful surroundings.

Read More : https://www.propertymomsg.com/post/pinetree-hill-residences-pricing-and-detailed-information

[grantsawsolicitor]

Leasehold and Freehold Reform Act 2024 Receives Royal Assent The Leasehold and Freehold Reform Act 2024 has received Royal Assent, introducing significant changes to leasehold property regulations. Key reforms include extending lease terms to 990 years, removing the two-year ownership requirement for lease extensions and freehold purchases, and eliminating marriage value from premium calculations. The Act also simplifies processes for leaseholders, including management rights and service charge disputes, and introduces new valuation methods and cost regulations. However, the proposed ground rent cap is not included. The Act's provisions are yet to be enforced.

For more details, visit Grant Saw Solicitors LLP.

[thaiattorney]

Buying Property in Thailand

Thailand is an attractive destination for property buyers due to its scenic landscapes, vibrant cities, and welcoming culture. However, purchasing property in Thailand, especially as a foreigner, involves navigating a complex legal framework and understanding the local market intricacies. This comprehensive guide will provide detailed insights, enhancing expertise and credibility by delving into the legalities, procedures, and best practices for buying property in Thailand.

1. Understanding the Legal Framework

Key Legal Restrictions:

Land Code Act B.E. 2497 (1954): Foreigners cannot own land in Thailand except under specific conditions.

Condominium Act B.E. 2522 (1979): Foreigners can own up to 49% of the total floor area of a condominium building.

Foreign Business Act B.E. 2542 (1999): Regulates foreign business activities and investments, impacting property purchases for business purposes.

Exceptions and Alternatives:

Board of Investment (BOI) Projects: Foreigners investing in BOI-promoted projects can acquire land under specific conditions.

Long-Term Leases: Foreigners can lease land for up to 30 years, with options to renew.

Thai Company Ownership: Forming a Thai company where foreigners hold less than 50% of shares allows indirect land ownership.

2. Types of Property Available for Purchase

Condominiums:

Freehold Ownership: Foreigners can own condominium units outright.

Ownership Percentage: The foreign ownership quota in a condominium building should not exceed 49%.

Leasehold Properties:

Land and Houses: Foreigners can lease land and houses for up to 30 years, with potential for renewal.

Registration: Leases exceeding three years must be registered at the Land Department to be legally enforceable.

Investment Properties:

Commercial Real Estate: Foreigners can invest in commercial properties through long-term leases or joint ventures with Thai partners.

Resort and Hotel Investments: Special regulations apply to foreign investments in resort and hotel properties, often requiring joint ventures.

3. Due Diligence and Legal Processes

Conducting Due Diligence:

Title Search: Verify the property’s legal status, ownership history, and any encumbrances or disputes.

Zoning and Land Use: Ensure the property complies with local zoning laws and land use regulations.

Environmental Compliance: Check for any environmental restrictions or issues affecting the property.

Engaging Legal and Financial Advisors:

Real Estate Lawyer: Hire a reputable lawyer specializing in Thai real estate to guide you through the legal processes.

Financial Advisor: Consult a financial advisor to understand tax implications, financing options, and investment strategies.

Steps in the Buying Process:

Reservation Agreement: Sign a reservation agreement and pay a reservation fee to secure the property.

Due Diligence: Conduct thorough due diligence with the help of legal advisors.

Sale and Purchase Agreement (SPA): Draft and sign the SPA, detailing the terms and conditions of the sale.

Deposit Payment: Pay a deposit, typically 10-30% of the purchase price.

Transfer of Ownership: Complete the transfer at the Land Department, paying the remaining balance and associated fees.

4. Costs and Taxes Involved

Purchase Costs:

Transfer Fee: 2% of the appraised property value.

Stamp Duty: 0.5% of the purchase price or appraised value, whichever is higher.

Withholding Tax: 1% of the appraised value or the actual sale price, whichever is higher.

Specific Business Tax (SBT): 3.3% of the appraised or actual sale price, applicable if the property is sold within five years of acquisition.

Ongoing Costs:

Common Area Fees: Monthly fees for maintenance of common areas in condominiums.

Property Tax: Annual property tax based on the assessed value of the property.

Utilities and Maintenance: Regular expenses for utilities, repairs, and maintenance.

5. Financing Options

Local Financing:

Thai Banks: Some Thai banks offer mortgage loans to foreigners for condominium purchases.

Eligibility Criteria: Generally, borrowers need to have a work permit, proof of income, and a good credit history.

Foreign Financing:

Home Country Banks: Some buyers secure financing from banks in their home countries, leveraging their assets abroad.

International Mortgage Providers: Specialized financial institutions provide mortgages for international property purchases.

Payment Plans:

Developer Financing: Some developers offer financing plans with staggered payments during the construction period.

Installment Payments: Buyers can negotiate installment payments directly with sellers or developers.

6. Common Pitfalls and How to Avoid Them

Legal Complications:

Unclear Title: Always verify the title to avoid disputes and ensure clear ownership.

Zoning Issues: Confirm zoning regulations to ensure the property can be used as intended.

Contractual Disputes: Have all agreements reviewed by a lawyer to prevent misunderstandings and ensure enforceability.

Financial Risks:

Currency Fluctuations: Be aware of exchange rate risks when making payments in foreign currency.

Hidden Costs: Account for all additional costs such as taxes, fees, and maintenance expenses.

Financing Challenges: Ensure you have a clear financing plan and understand the terms of any loans or payment plans.

7. Enhancing Expertise and Credibility

Demonstrating Professional Credentials:

Legal Qualifications: Highlight the legal qualifications and experience of your advisors and partners.

Professional Experience: Detail your experience in handling property transactions in Thailand.

Memberships and Affiliations: Include memberships in professional organizations like the Thai Bar Association, the Real Estate Broker Association, or international property associations.

Providing Authoritative References:

Cite Legal Documents: Reference specific sections of the Land Code Act and Condominium Act to support your points.

Expert Opinions: Incorporate insights from recognized experts in Thai real estate law and property investment.

Including Detailed Case Studies:

Client Testimonials: Feature testimonials from clients who have successfully purchased property in Thailand with your assistance.

Real-Life Examples: Provide detailed examples of successful transactions, highlighting any challenges overcome and solutions implemented.

Visual Aids and Infographics:

Process Flowcharts: Use flowcharts to depict the steps involved in the property buying process.

Diagrams: Create diagrams to visually explain key legal concepts and ownership structures.

[zenosanalytic]

Reading The Origins of Capitalism again, and something else obvious occurred to me: The meaninglessness of contracts under capitalism.

What do I mean by that? In Part I Section 2, Marxist Debates, Meiksins Wood discusses Marx's definition of 'capital' as a social-relation(ie: that it isn't just wealth, but wealth deployed to create more wealth through the labor of others), and specifically how it drove competition in the example of "scientific agriculture" in the English countryside during and after the period of Enclosure, to wit:

landlords raise their rents to driveout the old holders(realistically this was a MUCH more coercive and violent process than merely rent-increases, and it was a big change for other reasons I'll get to at the end)

then sell the land to agricultural-capitalists who can pay those rents.

Then continue to raise the rents on those capitalists, in response to their yearly production; the better the tenants do, the more the rent goes up.

This forces the agricapitalists to constantly reinvest(and "reduce costs" by cutting corners and abusing their laborers) to continue covering their rents

and forces them into competition with EACH-OTHER(in any method they can think of) as one farmer doing better will raise rates for EVERYONE, and eventually lead to the landlord selling THEIR land out from under them to those better performing

So what does this have to do with contracts?

In the feudal period, your contract was unassailable. Sure: the local lord could come and take your stuff by force if they wanted and waving the contract around wasn't going to stop them, but if you survived, and kept the contract intact, and made it to a royal or circuit court, you could prove your ownership and that you hadn't violated the terms, and you'd likely receive compensation if not complete restitution, AND the lord would be punished for harming his tenants(since the only thing nobles loved more that stepping on their tenants was stepping on each other).

In practice, trying to expropriate your tenants was so troublesome that lords tended to just honor their agreements. A Freeholder and their descendants would stay forever freeholders(excepting a violation in terms, for instance refusing feudal service), a leaseholder would live secure in their land until their lease's term expired, if you held your land for life your lord could not take it from your family until you died(and often "for-life" contracts would stipulate terms of renewal), if you paid rent for your land that rent COULD NOT BE Renegotiated for the term of the title; even a Serf or a Ward was guaranteed 1)a place to live 2)land to generate food from and 3)food to survive on when either that land, or their bodies, could not produce said food, under their, essentially, slavery-contracts.

In the feudal period contracts could only be legally renegotiated when their terms expired, or on holder-violations, and a lord who violated those contracts ran big risks: from their tenants who could rightfully resist such violations, from their peers always looking to expand their holdings, from their overlords(ditto, and always strapped for cash), and from The Church since IT, along with overlords, guaranteed contracts.

Under capitalism Renthold was powerfully favored over other forms of landholding and your rent- or lease-contract, then as now, could be "renegotiated" whenever the hell your landlord wanted, your consent and knowledge unnecessary. "The Sanctity of Contract" is supposedly one of the pillars of capitalist society, but the reality is that rentiers VIOLATING their contracts constantly is a central mechanism of it.

[dubaiorforeigners]

Cn you really buy a house in Dubai as a foreigner?

Yes, you can absolutely buy a house in Dubai as a foreigner. Dubai's real estate market is open to foreign investors, both residents and non-residents. There are a few things to keep in mind:

Freehold Areas: Foreigners can purchase property in designated freehold areas, which are specifically designed for foreign ownership. These areas include popular locations like:

Palm Jumeirah

Downtown Dubai

Dubai Marina

Arabian Ranches

Jumeirah Beach Residence

Dubai Hills Estate

Types of Ownership:

Freehold: This gives you complete ownership of the property and land, with the right to buy, sell, or lease it as you wish.

Leasehold: This gives you the right to occupy the property for a set period, usually up to 99 years.

Requirements:

Valid Passport: This is the main requirement for foreigners to purchase property in Dubai.

Funds: You will need to provide proof of funds for the purchase.

Mortgage: Foreigners can get mortgages from banks in the UAE, but the options may be more limited than for residents.

Process:

The buying process is fairly straightforward and similar to buying property in other countries. You'll need to:

Find a property in a freehold area.

Negotiate the price with the seller.

Sign a Memorandum of Understanding (MOU).

Pay a deposit (usually 10% of the purchase price).

Apply for a No Objection Certificate (NOC) from the developer.

Complete the transaction at the Dubai Land Department (DLD).

Benefits:

Investing in Dubai's real estate market can offer several benefits:

High rental yields: Dubai has a strong rental market, making it a good investment opportunity.

Capital appreciation: Property values in Dubai have historically shown good appreciation.

Tax-free income: Rental income earned in Dubai is tax-free.

Residency visa: Investing a certain amount in property can qualify you for a residency visa.

[girlactionfigure]

Zionists stole no land

2 historical reports debunk this - the 1930 Hope Simpson report & Peel Commission report 1937. They identify 5 categories of land under Ottoman rule ( 1517 - 1917 ) & under British mandate Mulk Miri Waqf Metruke Mewat So what category of land was stolen & when / where it was land registered by the owner So few indigenous Arab Palestinians ever owned one square foot of land - why ? Hope Simpson identified that of the approximate 10000 square miles covering the total geography of Palestine the land category segregation was comprised thus . Mulk or freehold accounted only for approximately 1% of the total and Zionist , Jewish organisations and individuals had legally acquired all . Waqf also approximated 1% and this was land of religious or charitable organisation ownership such as mosques, churches and synagogues and is still under such ownership today . Metruke and Mewat accounted for about 78% of the total land area and was designated state land and wasteland and set aside for ownership ( under immutable legally binding agreement endorsed within codified international law ) for the Jewish people on achieving an independent nation state . No person nor organisation owned any of this land - uncultivated marsh , desert or land set aside for parks , gardens , roads , paths , highways , government or military use etc . Thus the notion that Arab Palestinians previously owned the majority of the land land had it stolen is a total fabrication as confirmed and established in government reports . We have already identified that 80% was not owned by Arab Palestinian individuals nor families . Thus we are left with the Miri category or leasehold . The reports identify that one quarter of the remaining 20% of the Miri geography was legally acquired by Jewish organisations, families or individuals and all such land was registered and leased for 50 years. That leaves a remaining 15% of leasehold land and the vast majority of this was returned to government and this is explained simply as follows. In order to retain cultivation over the leasehold status the Fellahin ( peasant farmers) had to establish three years continuing cultivation (the then customary term of the lease ) and prove land registration . The former was virtually impossible as Bedouin marauders and Arab armed factions from wealthy Arab families drove the Fellahin from their land and substituted their own families or other Fellahin forcing them to pay higher prices to them . Knowing this the Fellahin never had their land registered as it was expensive and in the knowledge that the criminal Arab families and Bedouin would’ve probably kicked them off the land as was customary. The main other reason which ensured that the Fellahin left before the short leases expired and were returned to Government was as a direct result of malaria and drought that ravished the geography from circa 1912 and damaged the land for the next three decades. Being unable to substain three years continuous cultivation as the lease demanded the Fellahin had no option but to leave and give up the land they were farming . New improvement in agricultural technology initiated by the Zionists ensured production enhancement and created work for thousands of Arab immigrants and Fellahin . Lastly under oath to Sir Laurie Hammond at the Peel Commission the leader of the Arab delegation none other than the Nazi collaborator himself the Grand Mufti, testified on oath when pressed over and over again on the subject of stolen land , that NO land had been stolen but all legally acquired. He even named the Syrian, Turkish and Lebanese families mainly responsible for selling to the Jewish organisations and individuals. Historical evidence debunks all current Arab Palestinian narrative alluding to the myth of stolen land .

@baum_p

[houseofbrat]

“Andrew's situation was at least reasonable when he was a working royal. Except now he's not and never will be again.”

Andrew’s situation is different because he bought the leasehold for 75+ years in 2003. He was never a rental tenant.

From .gov:

“You only own a leasehold property for a fixed period of time. You'll have a legal agreement with the landlord (sometimes known as the 'freeholder') called a 'lease'. This tells you how many years you'll own the property. Ownership of the property returns to the landlord when the lease comes to an end.”

This is fairly usual in the uk and especially so in London.

Valid points all.

However, Royal Lodge isn't some random expensive house in London. It's part of The Crown Estate within the Windsor Great Park and also outside the normal security perimeter for Windsor Castle. As long as Andrew is living there, it's a public relations problem for the BRF as Andrew is not paying market-level rent, nor has he ever payed market-level rent to live there.

Also, KCIII is paying for Andrew's security separately because Royal Lodge isn't within the normal security perimeter. Moving Andrew to Frogmore Cottage means he'll be within that perimeter, and Charles will no longer have to pay extra for his security.