Freehold vs Leasehold - how long can the buildings last?

[kk1974]

Some developers that are selling leasehold property (Schon Properties) made point that practically there isn't much of a difference between leasehold and freehold, because the buildings in Dubai climate will not last 100 yrs anyway.

I'm not sure how well are they selling on those premises, but it is an interesting point.

How long will the buildings last in this climate?

 

[Fanny]

kk1974

I was alarmed at blogs I'd read about building longevity, so posted similar myself.
It might help you to focus your ideas.
Go to PAGE 11 (06/05/2008)
"Limited Lifespan of Tower Blocks."

I think your 100 years is far too generous!

 

[Roshan]

Some developers that are selling leasehold property (Schon Properties) made point that practically there isn't much of a difference between leasehold and freehold, because the buildings in Dubai climate will not last 100 yrs anyway.

I'm not sure how well are they selling on those premises, but it is an interesting point.

How long will the buildings last in this climate?

There is more of a physcological aspect to this. People generally shun the idea of leasehold as there are chances that the lease will not be renewed and they would have to give it back.

A little bit of sentimental value goes into property and generally breaks hearts when time comes to give back what you paid for from your sweat and toil.

Freehold is something which is yours forever ( so they say ). You have the right to that portion of the building. Tomorrow if they would like to demolish the building, you would be eligible for compensation - OR - the developer would have to relocate you to a suitable residence.

Nobody knows the definition of freehold as of yet with regards to Dubai property. But the books would define freehold as yours forever. The very fact that you own what you buy gives some kind of consolation and security to the investor.

Given a choice, I would always settle for freehold and not leasehold. Till now, I have never looked at leasehold.

Regards

Roshan

 

[Poorboy]

It's a little irrelevant really the difference between freehold and leasehold especially if u are an investor.Chances are most investors will sell within 10/15 years and still make the same profit as freehold.Its just the 'physcological aspect' that makes freehold worthwhile but really its just a minor thing.

 

[kk1974]

Jake

I tend to agree with you. It will always be much easier to resell freehold, though practically there isn't much difference, especially in Dubai.