What is the difference between leasehold and freehold?

Freehold gives full ownership of the land and the building. Leasehold gives the right to use land held on a lease, so transfer may need the lessor's permission and charges.

Can a leasehold property be converted to freehold?

In many cases yes, through a conversion process with the relevant authority and a fee. Rules and eligibility change, so check the current policy before you buy on the strength of a promised conversion.

Buying & Selling

Delhi NCR: Leasehold or Freehold? Why It Changes Your Purchase

The tenure of a property can affect transfer rules, conversion costs and loan terms.

By The Land and Law Desk

9 Oct 2026Updated 18 Oct 20265 min read

Who this affects

Worth a read

Read this if you are buying property in Delhi NCR or advising on its transfer or financing.

Buyers
Buyers must confirm tenure, lease terms and any transfer/conversion charges before paying.
Lenders
Loan terms may differ for leasehold versus freehold, so lenders should check tenure.
Lawyers & registrars
Need to verify recorded conversion and any permissions or charges for transfers.

Signals in this story

Political
Financial
Legal
Regulatory
Local

Legal signals strongest: tenure, transfer permissions and conversion requirements from development authorities are the core issues.

Freehold property in Delhi NCR gives full ownership of the land and building, while leasehold property gives the right to use land held on lease, usually from a development authority. Leasehold sales may need permissions or conversion, so buyers should confirm the tenure, lease terms and any transfer charges before paying.

Key takeaways

Check whether the property is leasehold or freehold.
Leasehold properties may carry transfer conditions.
Ask about conversion and who bears the cost.

In parts of Delhi, property is held on lease from a development authority, which can come with conditions on transfer and use. Freehold property is held outright.

Questions to ask

Is the property leasehold or freehold?
Are there transfer permissions or charges?
Has conversion been completed and recorded?

Frequently asked questions

What is the difference between leasehold and freehold?: Freehold gives full ownership of the land and the building. Leasehold gives the right to use land held on a lease, so transfer may need the lessor's permission and charges.
Can a leasehold property be converted to freehold?: In many cases yes, through a conversion process with the relevant authority and a fee. Rules and eligibility change, so check the current policy before you buy on the strength of a promised conversion.