Freehold vs Leasehold Plots

Freehold

With a freehold plot you own the land outright, without a time limit. You can sell, gift or mortgage it, subject to the law and any township rules. Most private plotted townships sell freehold plots.

Leasehold

With a leasehold plot you hold the land for a fixed period — often 90 or 99 years — under a lease from the owner, usually a development authority. You may need the lessor’s permission to transfer the plot, pay a transfer fee, and pay annual lease rent.

What it means for you

• Resale: leasehold transfers can take longer and cost more.
• Loans: banks lend on both, but may look at the remaining lease period.
• Conversion: some authorities allow leasehold-to-freehold conversion for a fee.

How to check

The sale deed or lease deed states the tenure. For authority-allotted plots, also check the allotment letter and the authority’s transfer rules.