What is the difference between a leasehold and a freehold estate?

Leasehold and freehold estates are two distinct types of property ownership in the Commonwealth of Virginia. A leasehold estate is a type of temporary property ownership that allows a tenant to occupy a space for a set period of time. The tenant pays the landlord a set amount of rent, and the term of the lease is usually predetermined and laid out in a contract. The tenant has exclusive use of the space, but the title to the property still belongs to the landlord. A freehold estate is more permanent than a leasehold estate. It is a type of proprietary ownership where the holder of the estate, known as the freeholder, owns the property outright and has the right to use it as they please. Freeholds are not restricted by time limits and may be passed down to heirs upon the owner’s death. Freeholders also have more rights to continue to own the property than leaseholders, as they are not subject to a predetermined term or contract. Leasehold and freehold estates are both common forms of property ownership in Virginia, and each has its advantages and disadvantages. While leaseholds provide a more temporary and cost-effective solution for those who don’t want to purchase a property outright, freeholds offer more security and protection when it comes to ownership rights.

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What is the difference between a leasehold and a freehold estate?

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