Freehold estates are characterized by their indefinite duration, meaning that they do not have a specified end date. This allows the owner of a freehold estate to possess the property for as long as they want, or until they choose to sell it or transfer it to another party. This type of ownership typically offers a higher degree of permanence compared to leasehold estates, which are granted for a specific, fixed term.
In contrast, leasehold estates have a finite duration because they operate under a lease agreement that specifies the length of time the tenant can occupy the property. Since leasehold agreements are temporary, they are inherently limited in duration.
Understanding this distinction is key in real estate, as it affects ownership rights, transferability, and the nature of property use. In essence, the nature of ownership in freehold estates, with its indefinite duration, is what fundamentally separates it from leasehold estates.