Ownership of a residence for a predetermined period is offered through a leasehold agreement. This arrangement grants the leaseholder exclusive rights to occupy and use the property, but ownership of the land itself remains with the freeholder. For instance, an apartment in a high-rise building might be sold as a leasehold, with the building’s land owned by a separate entity. The lease agreement specifies the duration of ownership, often ranging from decades to centuries.
This type of ownership can offer a more affordable entry point into the property market, particularly in prime locations where freehold ownership commands significantly higher prices. Historically, leasehold arrangements were common for large estates and urban developments, allowing for efficient land use and providing a stable income stream for landowners. The structure remains relevant today, particularly for apartments and properties in planned communities.
