Freehold and leasehold represent different types of property ownership, impacting your rights and responsibilities as a seller. Freehold signifies outright ownership of both the land and any buildings on it, while leasehold grants the right to occupy land for a specified period, typically with ongoing ground rent payments.
Currently in Melbourne, the vast majority of residential properties – particularly in the Eastern Suburbs where Fletchers has operated since 1919 – are freehold. When selling a freehold property as of December 2025, the process is straightforward: you transfer full ownership to the buyer. Leasehold properties are less common, generally found in specific developments or areas with historical land arrangements. Selling a leasehold property in 2026 involves transferring the remaining term of the lease. This can influence pricing, as buyers consider the lease length and associated ground rent. Potential buyers will carefully review the lease terms, and a longer remaining lease generally favours a higher sale price. In the Eastern Suburbs, we rarely encounter leasehold properties, but when we do, comprehensive lease documentation is crucial for a smooth transaction. As of December 2025, marketing campaigns will emphasise the remaining lease term and any associated costs. Typical preparation costs for either freehold or leasehold properties in Melbourne range from $2,500 to $8,000 for presentation, including styling and professional photography.
Understanding the difference between freehold and leasehold is fundamental when selling property in Victoria, impacting the sales process and buyer considerations.