What is Freehold?

Freehold is the most absolute form of property ownership, granting the holder unlimited time of possession of the land and any buildings on it, subject only to statutory obligations such as zoning, taxes and easements.

Freehold ownership is the default for houses in most of continental Europe and North America. It carries no ground rent, no expiring lease and no landlord above the owner — selling and inheriting are straightforward.

Freehold is more valuable than equivalent leasehold property. In condo or apartment ownership, the dwelling unit may be 'freehold-equivalent' (commonhold in England, Stockwerkeigentum in Switzerland) while the land remains in shared ownership.

Example

A Swiss single-family home is held as freehold (Eigentum) with permanent ownership of land and building; no ground rent and no term limit — ownership simply transfers with each sale.

Related terms

Leasehold

Leasehold is a form of property tenure in which the holder owns the right to occupy and use a property for a fixed term under a lease from the freeholder, but does not own the land outright.

Title Insurance

Title insurance is a one-time premium insurance policy that protects property buyers and lenders against financial loss from defects in the title to the property — such as undisclosed liens, fraud, or competing ownership claims.

Property Value

Property value is the estimated worth of a piece of real estate, determined by appraisal, comparable sales or income approach, and used for sale pricing, mortgage underwriting, taxation and insurance.

Stamp Duty

Stamp duty is a tax levied on legal documents — most notably on property transfers — calculated as a percentage of the transaction value and paid by the buyer to register the transaction.

Frequently asked questions

Is freehold always better than leasehold?+

Usually yes for residential property, but leasehold can be cheaper to acquire and may be the only option in some markets.

What is commonhold?+

An English form of freehold ownership for flats, with common areas held jointly — similar to Swiss Stockwerkeigentum.

Are there any obligations on a freeholder?+

Property taxes, building codes, zoning restrictions, and easements — but no landlord and no expiring term.