If you are considering buying property in Ghana, there are a few things to consider before making a decision. One of the most critical is whether or not you want to buy leasehold or freehold land.
Freehold land comes with full ownership rights, and it does not have a fixed time limit for use. Leasehold property also has full ownership rights, but the duration for when it can be occupied is usually limited by a certain number of years or decades. The length of that occupation time varies depending on what type of lease you get. With both types of properties, the seller must provide deeds and transfer documents upon purchase and authorize any changes to be made to the property's title deed. Here are some guidelines on how to choose between leasehold and freehold properties in Ghana.
A leasehold property is when the buyer pays for a right of occupancy and it owns the property, but the ownership is not considered free. The duration of this occupancy time varies depending on what type of lease you get. In Ghana, you can get renewable leases that are for a fixed term with rights to renew, or there are non-renewable leases that expire after a certain number of years. With both types of properties, the seller must provide deeds and transfer documents upon purchase and authorize any changes to be made to the property's title deed.
Freehold property offers the flexibility of ownership. There is no time limit for what you can do with your land. You also don't have to worry about any conditions that might be set in a leasehold contract. If you want to make changes to your property, such as building an addition or expanding, you are able to do so without needing permission from the landlord.
Leasehold property is a great way to invest in property with the option of ownership. You get the benefits of both leasehold and freehold properties, but you don't have to make a final decision until it comes up for renewal. For example, if you buy a 30-year leasehold property that has 10 years left on it and you want to buy more land or purchase an additional house, you're able to do so without worrying about purchasing the leasehold property. You can even sell your leasehold property before it expires if you choose - as long as there is someone willing to take over your lease.
There are a few reasons why you may want to buy leasehold property. Leaseholds can be helpful for people who don’t intend to live in the house for the long term, and they can also be a good option for someone who is unsure if they want to stay in Ghana permanently.
Leasehold properties are usually cheaper than freehold properties because there are no transfer taxes or other fixed costs associated with them. You will have to pay a rent, but that amount is usually less than what you would have paid in a lump sum of money at the beginning of your contract.
Freehold property can be bought at any Residential and Commercial Land Office in Ghana.
Leasehold property is the most common form of tenure in Ghana. It is often used in apartment blocks and commercial buildings. Unlike freehold property, leasehold property is not permanent. For example, in the case of a leasehold property, the term of the lease will be specified in the contract. The tenant has to vacate the property at the end of the lease.
If you want a more permanent home, it is advisable to buy a freehold property. Freehold properties are usually offered by developers who buy land and then create residential homes on it. Freehold properties are an investment that will increase in value over time.