---
title: Is freehold property treated differently from leasehold?
description: Freehold properties are generally preferred for a Loan Against Property, as they offer full ownership and transfer rights. Leasehold properties may also be accepted, but banks usually apply stricter conditions regarding lease tenure and legal documentation.
url: "https://yazodo.com/help/loan-against-property/is-freehold-property-treated-differently-from-leasehold/"
updated: "2025-12-07"
category: Loan Against Property
tags:
  - Eligibility
  - LAP
  - "Loan Amount & Valuation"
  - "Property & Collateral Requirements"
---

# Is freehold property treated differently from leasehold?

Freehold properties are generally preferred for a Loan Against Property, as they offer full ownership and transfer rights. Leasehold properties may also be accepted, but banks usually apply stricter conditions regarding lease tenure and legal documentation.