LEASE HOLD LAND VS FREE HOLD LAND
Wednesday, December 24, 2008
LEASE HOLD LAND Means Land which is rented from the owner for a specified term under a lease. At the expiry of the term the land reverts back to the owner.
FREE HOLD LAND Means real land held in absolute possession after payment in cash or kind.
Labels: accounting
posted @ 10:14 AM,
1 Comments:
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At December 25, 2008 at 3:04 PM,
Abdul Hannan said...
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What is Differece between Lease Hold land and Free lease Land /or without Lease Land.
Normally the Lands are on lease hold for 99 years sometime 25 years( especially in cantonment area ). It means that land has to be returned back to original owner from the date it was first leased ( or as per agreement). Normally in all cases the original owner is Government./ Society
Say for example : you purchased a land / bunglow in PECHS on Jan 2006, the land was originally leased to Mr. A on Jan1948. It means that you have to returned that Land/ Banglow on December 2047 or the person who will be holding this property on that date.
As per normal practice the Government takes a nominal fee and renew the lease document for next 99 years. ( Subject to various conditions as indicated in relevant laws)
If you bought your property with a 99 ( or 125 / 25) year lease, the gvernment, as landlord, is obliged to provide you with certain services and to charge you for those services. These are called routine service charges. In addition, from time to time you will be charged for your share of the cost of any major works to your block or estate (if relevant). These are called major works service charges.
Freehold Land on the otherside a non-lease contract , providing the right of holding the property for infinity ( with some terms and conditions) . ( with same charges or more).
Regards,
Abdul Hannan
0321-9298039
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