The Difference between Leasehold and Freehold

Home ownership can be quite a complicated topic. The laws regarding home ownership differs by country. Every government imposes laws and restrictions on home ownership but most of them center on the fundamental forms of legal ownership. There can only be two: freehold and leasehold. There are some instances where sharing of the freehold is also allowed.

So if you are a foreign national eyeing a Hua Hin house for sale, you should take some time to learn more about legal home ownership.


If you are a freeholder, it would mean that the building or the property outright belongs to you. The property would be listed in your name in the land registry. This would mean that your title is absolute. In society today, majority of houses are freehold properties.

When you purchase a freehold property, this would mean that all the rights belong to you as well as the responsibility that come with it. You are the one responsible for maintaining the property and managing all its costs.

Purchasing a freehold property comes with a lot of benefits. The first one is that you do not need to worry about the expiration of leases as the property already belongs to you. You would not also need to deal with a freeholder, or the so-called “landlord” and all their service charges.


Leasehold means that you will be allowed to use the home for a number of years as agreed upon with the freeholder or the landlord. This means that you would have to sign a contract with the freeholder. Leases are often long-term, lasting for a number of years ranging from 90, 120 and even 999 years.

In leasehold, you would need a contract that would lay down the legal rights and terms for both sides. The freeholders will still retain their right to manage and maintain the property but when leaseholders have acquired their ‘right to manage,’ then it will also be their responsibility.

As a leaseholder, you would need to pay maintenance fees and annual service fees as required by the freeholder. Also, you would need to pay a share of the insurance as well as an annual ground rent.

Before you can conduct major works on the property, you would need to seek out the permission of the freeholder.

Lastly, you are a subject to the terms and conditions laid by the freeholder.