Leasehold versus Freehold

What is the difference between leasehold and freehold tenures?

When state land is disposed off by the state authority to an individual in perpetuity for an indefinite period, this land is now granted as freehold title.

When the state land is disposed of by the state authority to an individual for a term of years, by virtual of law, not exceeding 99 years, this land is now granted as leasehold title. Upon expiry of the period of the lease, the land should be reverted to the state authority.

The owner will then have to either apply for a renewal of the lease before its expiry or apply for a fresh alienation if the lease has expired. These will involve the payment of a hefty premium which would be close to buying the land all over again with perhaps some discount.


(1) Leasehold

(a) Land uses:

Lease duration usually 30, 60, 99 or 999 years.
Limited by purpose of lease and land legislation.
Stocking levels, cultivation, etc may be restricted by lease conditions.
Limited by environmental and town planning controls.

(b) Duty of care:

High level of duty of care defined in land legislation.
May be responsible for developing and maintaining improvements.
May be required to engage in property planning.

(c) Transferability, aggregation and subdivision:

Lease transfers require State or its equivalent's approval.

(d) Retrieval/resumption:

Powers to acquire leasehold interest or withhold land when lease expires.

(e) Security of tenure:

Varies according to lease type but forfeiture for non-performance may be possible.


(2) Freehold

(a) Land of uses:

Limited by environmental and town planning controls

(b) Duty of care:

Duty of care following common law and as required by some Environment Protection Acts or its equivalent.

(c) Transferability, aggregation and subdivision:

Few limitations on transfer.
Unlimited right to subdivide and aggregate subject to town planning controls.


(d) Retrieval/resumption:

Some powers to acquire land for public works.

(e) Security of tenure:

Very high level of security.