Freehold property means you own the property and the land it sits on indefinitely. It’s the most complete form of ownership and gives the buyer full rights to sell, rent, or pass it down to heirs.
Ownership is permanent
You own both the building and the land
Usually fewer restrictions on resale or transfer
Common in Europe, North America, and parts of Latin America
Freehold is the preferred option for long-term investment and generational planning.
Leasehold means you own the property for a fixed period, but not the land. You’re essentially leasing it from the landowner (often a government, private landlord, or trust) for a set number of years — typically 30, 50, or 99 years.
Time-limited ownership (usually 30–99 years)
You own the building, but not the land
Lease may be renewable (but not always guaranteed)
Can involve annual fees or ground rent
Leasehold is more common in markets with foreign ownership restrictions or traditional landholding systems.
Depending on the country you’re buying in, foreigners may be restricted to leasehold property only, especially in regions where land ownership is protected for citizens.
Thailand: Foreigners can own condos freehold but not land — houses must be leasehold.
Indonesia: Foreigners can buy leasehold only (30–80 years); freehold is restricted to citizens.
Dubai (UAE): Designated freehold zones exist, but outside those areas, leasehold (typically 99 years) is the rule.
UK: Apartments are often leasehold, even for citizens.
Understanding the difference is crucial to knowing what rights you’re actually getting — and how that impacts resale value or long-term use.
Let’s compare the two ownership types from an investor’s point of view:
| Factor | Freehold | Leasehold |
|---|---|---|
| Ownership Duration | Unlimited | Fixed term (30–99 years) |
| Land Ownership | Yes | No |
| Control | Full rights | Limited by lease terms |
| Resale Value | Higher & stable | May depreciate over time |
| Renewability | Not needed | Must negotiate/renew lease |
| Financing Ease | Easier for mortgages | Often more difficult |
| Ideal For | Long-term investing, legacy planning | Short-term or lifestyle buying |
Yes, but renewal isn’t always automatic.
Some countries allow leaseholders to renew their lease upon expiry, while others require negotiation, government approval, or payment of market-value premiums.
Bali (Indonesia): Leaseholds of 30 years can often be extended another 20–30 years, but the terms vary by landowner.
Thailand: Standard leases are 30 years, with possible 30-year extensions. But extensions aren’t guaranteed and must be renegotiated.
UAE: Leaseholds are usually 99 years and may be renewable depending on the project developer or municipality.
Always ask upfront:
"What happens when the lease ends?"
Make sure this is clearly stated in your contract.
While leasehold can offer access to prime locations and more affordable pricing, it comes with its own set of risks.
Lease Expiry: The closer you get to the lease expiration, the less valuable the property becomes.
Limited Financing: Many banks are hesitant to offer mortgages on leasehold properties, especially with short lease terms remaining.
Complicated Resale: It may be harder to resell a leasehold than a freehold property.
Dependency on Landowner: Lease conditions can change if the landowner changes or refuses to renew.
Lack of control: You may face restrictions on remodeling, renting, or altering the property.
That’s why leasehold purchases require extra due diligence and legal guidance.
Despite its limitations, leasehold ownership can make sense for certain investors or use cases.
Short- to medium-term use: Vacation homes, retirement homes for 10–20 years
Lower capital investment: Cheaper than freehold in most cases
Markets with no freehold access for foreigners
Managed properties: Resort-style villas, branded residences
Lifestyle over legacy: Buyers who don’t plan to pass the property to children
It can be a smart move — as long as you’re fully aware of the limits.
Here’s your leasehold due diligence checklist before investing:
What is the exact length of the lease?
Is it renewable, and under what terms?
Who owns the land — a private party, government, or developer?
Are there annual lease or ground rent fees?
Can the lease be transferred or sold to others?
Is the lease registered with the government?
Does the lease give you exclusive use of the land?
What happens at lease expiry — can the structure be retained, removed, or must be surrendered?
Hire a qualified real estate attorney in the country to review lease documents and ensure your rights are protected.
| Country | Freehold for Foreigners? | Leasehold Details |
|---|---|---|
| Thailand | Only condos (not land) | 30-year lease, renewable |
| Indonesia | No freehold | 30–80 year leases |
| UAE (Dubai) | Yes, in designated zones | 99-year leasehold common |
| Portugal | Yes | Freehold standard |
| UK | Yes | Many flats are leasehold |
| Spain | Yes | Freehold is norm |
| Philippines | Condos only | 25–50 year leases for land |
It depends on your investment goal, location, and risk tolerance.
If you want permanent ownership, asset security, and high resale value, hold out for freehold.
If your goal is a lifestyle purchase (e.g., 15 years of tropical winters in Phuket), leasehold can work — especially when priced accordingly.
In some cases, leasehold properties offer high rental yields in tourism hotspots, which can offset the risks.
Just remember: with leasehold, your clock starts ticking the day you buy.
The difference between leasehold and freehold may seem subtle, but it’s one of the most critical factors in international real estate.
Buying property abroad is more than just location or design — it's about legal control, financial flexibility, and long-term security.
Before you invest:
Know what type of ownership you’re buying
Work with local experts to review contracts
Factor lease terms into your ROI and exit strategy
With the right knowledge, you can confidently invest in your dream property — whether it’s a freehold apartment in Lisbon or a leasehold beachfront villa in Bali.
