A property advertisement may call an apartment **freehold**, **leasehold**, or simply "ownership" without explaining the legal interest being transferred. This distinction can affect transfer conditions, lender acceptance, recurring payments and what happens at the end of a lease. It is especially worth checking in planned developments such as New Town, where different land parcels and projects may have different grant and title histories.
**Do not assume all properties in a locality have the same tenure.** A developer's sales brochure is not a substitute for the registered underlying documents and a lawyer's title search.
What freehold and leasehold generally mean
A freehold interest usually gives ownership of land or property rights of indefinite duration, subject to planning, statutory restrictions and other lawful encumbrances. A leasehold interest gives possession and use rights for a specified lease term under conditions set out in the lease. Leaseholds may be valuable and marketable, but they can have transfer, renewal or use restrictions that a buyer must understand.
For apartments, **the unit ownership structure and underlying land tenure can be different concepts**. Do not infer that every unit in a tower is freehold because the developer uses that word in marketing.
Documents to obtain before paying a booking amount
- Registered sale deed, assignment, conveyance, grant or lease relevant to the unit and land.
- Full chain of title and details of the current owner or lessor.
- Original lease tenure, commencement date and remaining years, if relevant.
- Conditions relating to transfer, subletting, inheritance, mortgage or change of use.
- Any required lessor, authority or society consent and the applicable fee calculation.
- Evidence of unpaid ground rent, transfer charges or other liabilities.
- Sanctioned building plans, required project registrations and completion records.
- Litigation, charges, encumbrances and lender security interests.
Questions to ask about transfer and finance
**Can the owner assign the lease without approval?** Check the exact wording, not an agent's verbal assurance. **Will a lender mortgage this property?** Ask the prospective lending bank to review the documents before you rely on loan eligibility. **Are there renewal rights?** The existence and price of renewal cannot be guessed from the lease's nominal end date.
Some lease conditions can restrict alterations or the permitted use of the property. This matters if you intend to run an office, rent short-term or make major structural changes.
