Definition
Unlike Freehold, a Leasehold Property means the buyer has the right to occupy and use a property for a specifically defined lengthy period (typically 30, 99, or 999 years), but the ultimate ownership of the underlying land remains with the freeholder (usually a government authority like CIDCO or DDA). Upon lease expiry, ownership reverts to the freeholder unless renewed.
Practical Example
A manufacturer buys a factory in a government-run industrial corridor (MIDC). It is a 99-year Leasehold property. The manufacturer can build the factory and operate it, but they must pay an annual lease rent to the government. They cannot convert the land to residential use without explicit permission from the lease granting authority.
Application in Superwise
Leasehold timelines are critical legal milestones. Superwise’s Document Management System allows legal teams to track Leasehold agreements. It alerts the management team years before a 99-year lease is set to expire or when mandatory annual lease ground rents are due, preventing catastrophic legal defaults.
Are you ready to SuperWise?
Take a demo or signup now to experience an empowering construction project management solution.