Freehold VS Leasehold

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Freehold VS Leasehold

Looking for a home that’s right for you and your family? Do you know the differences between a freehold and a leasehold property?

Here we’ll explain the differences between Freehold and Leasehold, and how it can affect your decision in buying a property.


A freehold property will belong entirely to the owner with no control from the government. A form of Master Title, also known as the developer’s title, will be transferred to the buyer which the property is built on it, provided it is a landed property such as a link or detached home.

For condominiums or other high-rise residential properties, the buyer owns a stake in the condo (based on the number of units) but the land still belongs to the developer. In this case, the developer will distribute the ownership via strata titles.


As the title suggests, the buyer is not the owner of the property/land, which means that the tenant is granted ownership of the property on leasehold land for a lease period. In Malaysia generally, the lease period varies from 30-99 years.

When you reach the end of the tenure, you would have to submit an application to the state government to extend the lease, where if approved, you will have to pay a fee (based on the market value of that property/land at the time).

Below is a simplified infographic for you to better understand the differences between freehold and leasehold properties.

Freehold Vs Leasehold

Freehold or leasehold

If you plan on living in a place for a long time or are looking to hand it down to future generations, a freehold home may be the best option for you. Have a look at the freehold homes we have at Bandar Baru Sri Klebang or Taman Meru Mentari, your future home may just be around the corner.