What is freehold property?
Also called: freehold, malikana haq, full ownership property
A freehold property is one you own outright, land and building, with no time limit and no lessor to answer to. You can sell, gift, mortgage or will it without anyone's permission, subject only to general planning and tax laws.
Most resale flats and houses in Mumbai, Bengaluru, Chennai and Kolkata sit on freehold land held by the society, the association or the individual owners. Freehold is the default in much of India, which is why buyers only notice the word when it's missing.
Where it really matters is in cities built on government-leased land. Large parts of Delhi were allotted by the DDA and the Land and Development Office on 99-year leases, and those owners had to apply to convert to freehold by paying conversion charges based on the land rate. Many did; many didn't. In Chandigarh, too, some properties are freehold and some leasehold. A seller who says "it's freehold" in Delhi should be able to show the conveyance deed issued by the DDA or L&DO after conversion.
Freehold gives you a few practical advantages. No transfer charges or lessor's no-objection certificate are needed when you sell. You don't pay annual ground rent. Banks lend more freely, and valuations tend to be higher than for an identical leasehold property next door.
Freehold doesn't mean free of all rules. The land may still be subject to the city's master plan, the society's bye-laws, a road widening line or a heritage restriction. And "freehold" in a builder's brochure means nothing until the title is checked: the land should be freehold in the landowner's or developer's name, with the chain of deeds and the encumbrance certificate to show it.
Two identical 3 BHK builder floors in Rajouri Garden are listed side by side, one converted to freehold at ₹2.35 crore and one still on DDA lease at ₹2.1 crore. The buyer of the leasehold flat would have to pay the conversion charges and wait for the freehold conveyance before the gap closes.
Taking "freehold" on trust in Delhi. Ask for the conversion deed or the original freehold title; an application for conversion that was never completed leaves the property leasehold.
Questions people ask about freehold property
Is freehold property better than leasehold?
For most buyers, yes, because there are no transfer permissions, ground rent or lease expiry to deal with. Leasehold can still be a fair buy if the price reflects those costs.
How do I convert leasehold to freehold in Delhi?
Apply to the lessor (usually the DDA or L&DO) under its conversion scheme, pay the conversion charges and any dues, and collect the conveyance deed, which must then be registered.