At PDR Property Lawyers, we pride ourselves on taking the confusion and difficulty out of property matters. One topic we are regularly asked about is around leasehold and freehold, what they mean and what the difference is. Whether you are an existing client, someone looking into the world of properties or just keen to learn more we have put together some answers to our FAQs to make our jargon a little less alien to you!
1. What does Freehold mean?
Freehold means the outright ownership of a property or land. Freehold is the most ownership you can have as all land technically is held subject to the crown. The ownership is for an unlimited period and applies to most houses.
2. What does Leasehold mean?
Leasehold, simply put is a temporary right to occupy land or property.
3. What does ‘The Fee Simple Absolute in Possession’ mean?
The Fee Simple Absolute in Possession is another way of expressing freehold interest in land (refer to Q1). This is a more legal definition, jargon upon jargon!
4. What is the difference between a lessee and a lessor?
A lessee and a lessor is another term for a tenant and landlord. The lessee is the tenant who occupies the property and the lessor is the landlord who owns the property.