If you are a first time home buyer, starting your search for the ideal property can be a tough and overwhelming task. With a number of unfamiliar situations to navigate yourself through, the entire process can be a lot more intimidating than you imagined. To be able to work your way around the various technical and legal terminology, here is a great place to start.
Understanding the Different Types of Ownership
Before you start looking at new residential apartments in Lucknow it is important that you weigh your options. Understand that you as home seeker have two property ownership modes to choose from –
The more common of the two types of ownership, a freehold ownership is where the buyer essentially has complete legal rights over the property in question. This means that he has the right to transfer the ownership, sell the property or stay in it as per his own needs and whims.
In this form of property ownership, one essentially only owns the building but does not own the land. Furthermore, the ownership of the property is for a pre-defined tenure that can go up to 99 years. At the end of the lease agreement period, the property ownership is transferred back to its original owner.
Which Option must I go for?
The freehold property option proves to be a much more practical investment option since you are securing the future for not only yourself for also your heirs. Furthermore, such property is also a lot more marketable in the real estate market, making it easier to sell, mortgage or rent out in the time of need.
Understanding the Transfer of Property
Furthermore, your leasehold residential apartment in Lucknow cannot be transferred as easily as one can transfer a freehold home. You will be expected to have a Power of Attorney for conducting any form of transaction. Furthermore, this power PoA ceases to exist when the seller or the owner passes away.
Enjoying Absolute Ownership
In case of a freehold property, the complete legal ownership of the apartment in question goes to the buyer. In the case of leasehold, the buyer is essentially a lessee and has extremely limited rights. Opting for a leasehold solution is ideal only if your requirement is a short-term one and you want easy access to a home for a limited period of time. Also, if you intend to delay your decision to buy a new home because of an unfavourable buyer’s market, you can temporarily consider opting for a leasehold ownership at a negotiated price.
Considering that the title is always absolute and clear, most real estate experts recommend that home buyers opt for the freehold property mode of ownership. This option tends to be a lot more stable and owners are able to enjoy the benefit of market appreciations in the long run. These properties are easier to sell, mortgage and maintain as standing security.