Freehold vs Leasehold in Nigeria: Understanding the Meaning and Implications
BY: Landnest Homes And Properties
BY: Landnest Homes And Properties
Monday, October 20, 2025
October 20, 2025
The Foundation: Land Ownership in Nigeria
By law, all land in Nigeria is vested in the government under the Land Use Act of 1978. Governors hold land in trust for the people. What individuals and companies own are interests or rights in land, not absolute land itself.
These interests typically fall into two broad categories:
Freehold (stronger, closer to absolute ownership)
Leasehold (time-bound, renewable, tied to government grants)
Understanding them is key to making smart property choices.
What Is Freehold?
A freehold interest means the buyer has rights to the land indefinitely. In practical Nigerian terms, freehold often refers to land that:
Is privately owned (family, community, or individual ownership)
Can be inherited, sold, or transferred without time limits
Gives the buyer near-absolute control and subject to planning laws and taxes
For families, freehold land means generational security. Children and grandchildren can inherit without worrying about expiration dates.
Tip: Always confirm if a “freehold” claim is genuine by checking the survey plan, deed, and excision status.
What Is Leasehold?
A leasehold interest is land granted for a specific period, commonly 99 years under Nigerian law. After expiration, the land reverts to the government unless the lease is renewed.
This applies especially to urban areas, estates, and lands formally allocated by the government.
Leasehold buyers get:
Rights to occupy and use the land during the lease period
Obligation to pay ground rent and charges
Uncertainty beyond the lease expiration unless renewal is granted
Tip: Leasehold is not “bad”, it’s just different. Many prime estates in Lagos, Abuja, and Ibadan are leasehold, yet highly valuable.
The Foundation: Land Ownership in Nigeria
By law, all land in Nigeria is vested in the government under the Land Use Act of 1978. Governors hold land in trust for the people. What individuals and companies own are interests or rights in land, not absolute land itself.
These interests typically fall into two broad categories:
Freehold (stronger, closer to absolute ownership)
Leasehold (time-bound, renewable, tied to government grants)
Understanding them is key to making smart property choices.
What Is Freehold?
A freehold interest means the buyer has rights to the land indefinitely. In practical Nigerian terms, freehold often refers to land that:
Is privately owned (family, community, or individual ownership)
Can be inherited, sold, or transferred without time limits
Gives the buyer near-absolute control and subject to planning laws and taxes
For families, freehold land means generational security. Children and grandchildren can inherit without worrying about expiration dates.
Tip: Always confirm if a “freehold” claim is genuine by checking the survey plan, deed, and excision status.
What Is Leasehold?
A leasehold interest is land granted for a specific period, commonly 99 years under Nigerian law. After expiration, the land reverts to the government unless the lease is renewed.
This applies especially to urban areas, estates, and lands formally allocated by the government.
Leasehold buyers get:
Rights to occupy and use the land during the lease period
Obligation to pay ground rent and charges
Uncertainty beyond the lease expiration unless renewal is granted
Tip: Leasehold is not “bad”, it’s just different. Many prime estates in Lagos, Abuja, and Ibadan are leasehold, yet highly valuable.
The Key Differences at a Glance
Feature | Freehold | Leasehold |
|---|---|---|
Duration | Unlimited/indefinite | Usually 99 years (renewable) |
Control | Full control (subject to laws) | Controlled by lease terms |
Inheritance | Can pass to future generations | Limited to lease period unless renewed |
Payment | One-time purchase + taxes | Ground rent + possible renewal fees |
Common in | Rural, suburban, family-owned land | Urban, government-allocated estates |
The Key Differences at a Glance
Feature | Freehold | Leasehold |
|---|---|---|
Duration | Unlimited/indefinite | Usually 99 years (renewable) |
Control | Full control (subject to laws) | Controlled by lease terms |
Inheritance | Can pass to future generations | Limited to lease period unless renewed |
Payment | One-time purchase + taxes | Ground rent + possible renewal fees |
Common in | Rural, suburban, family-owned land | Urban, government-allocated estates |
Implications for Buyers
For Families
Freehold: Peace of mind, easier inheritance, long-term stability.
Leasehold: Affordable entry to urban estates, but requires awareness of lease terms.
For Investors
Freehold: Best for land banking, hold long-term, value rises indefinitely.
Leasehold: Can still be profitable if location is prime (e.g., Lekki), but resale must factor in years left on lease.
For Developers
Freehold: Greater freedom to build without renewal pressure.
Leasehold: Common in major cities; requires legal clarity and compliance with ground rent.
The Nigerian Reality
Most land advertised as “freehold” in suburbs like Ido or Egbeda in Ibadan, or Ibeju-Lekki in Lagos, is excised family/community land. These are often cheaper but require due diligence.
Most land in urban centres like Lekki, Ikoyi, Victoria Island, and Abuja are leasehold allocations from government. These are pricier but come with structured infrastructure and higher demand.
Tip: Don’t dismiss leasehold land, it’s often where the strongest appreciation happens. Just understand the terms.
Implications for Buyers
For Families
Freehold: Peace of mind, easier inheritance, long-term stability.
Leasehold: Affordable entry to urban estates, but requires awareness of lease terms.
For Investors
Freehold: Best for land banking, hold long-term, value rises indefinitely.
Leasehold: Can still be profitable if location is prime (e.g., Lekki), but resale must factor in years left on lease.
For Developers
Freehold: Greater freedom to build without renewal pressure.
Leasehold: Common in major cities; requires legal clarity and compliance with ground rent.
The Nigerian Reality
Most land advertised as “freehold” in suburbs like Ido or Egbeda in Ibadan, or Ibeju-Lekki in Lagos, is excised family/community land. These are often cheaper but require due diligence.
Most land in urban centres like Lekki, Ikoyi, Victoria Island, and Abuja are leasehold allocations from government. These are pricier but come with structured infrastructure and higher demand.
Tip: Don’t dismiss leasehold land, it’s often where the strongest appreciation happens. Just understand the terms.
Risks to Watch
Fake Freehold Claims: Some sellers market leasehold plots as “freehold” to attract buyers.
Unclear Documentation: Without excision or C of O, “freehold” land may later be reclaimed by the government.
Lease Expiry: Buying leasehold land with only 30–40 years left may affect resale value.
Double Sales: Family-owned freehold land may have multiple claimants.
Tip: Always involve a lawyer and confirm land status at the land registry before payment.
Risks to Watch
Fake Freehold Claims: Some sellers market leasehold plots as “freehold” to attract buyers.
Unclear Documentation: Without excision or C of O, “freehold” land may later be reclaimed by the government.
Lease Expiry: Buying leasehold land with only 30–40 years left may affect resale value.
Double Sales: Family-owned freehold land may have multiple claimants.
Tip: Always involve a lawyer and confirm land status at the land registry before payment.
How to Choose Between Freehold and Leasehold
Ask yourself:
Am I buying for a personal family home or for investment?
Do I prioritize indefinite ownership, or location prestige?
Can I manage renewal and ground rent obligations?
Does the land fit my budget and long-term vision?
If your goal is generational inheritance, freehold is better.
If your goal is urban living or high returns, leasehold may be smarter.
Checklist Before Buying
Confirm land title type (freehold or leasehold)
Verify excision or C of O with the land registry
Review lease duration (for leasehold plots)
Ask about ground rent and renewal costs
Get all agreements in writing
Use an independent lawyer, not just the seller’s lawyer
Final Thoughts
Freehold and leasehold are two doors to the same destination ownership rights. The difference lies in how long those doors stay open, and under what conditions.
The wise buyer studies both options, matches them to personal circumstances, and secures land with clarity.
At Landnest, we simplify these choices. All our properties are freehold. We help clients buy documented, verified land with full transparency.
How to Choose Between Freehold and Leasehold
Ask yourself:
Am I buying for a personal family home or for investment?
Do I prioritize indefinite ownership, or location prestige?
Can I manage renewal and ground rent obligations?
Does the land fit my budget and long-term vision?
If your goal is generational inheritance, freehold is better.
If your goal is urban living or high returns, leasehold may be smarter.
Checklist Before Buying
Confirm land title type (freehold or leasehold)
Verify excision or C of O with the land registry
Review lease duration (for leasehold plots)
Ask about ground rent and renewal costs
Get all agreements in writing
Use an independent lawyer, not just the seller’s lawyer
Final Thoughts
Freehold and leasehold are two doors to the same destination ownership rights. The difference lies in how long those doors stay open, and under what conditions.
The wise buyer studies both options, matches them to personal circumstances, and secures land with clarity.
At Landnest, we simplify these choices. All our properties are freehold. We help clients buy documented, verified land with full transparency.
Comments
Comments
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
Registered under EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.
LET’S GET IN TOUCH
The Ultimate Real Estate Investment Provider
Discover the unthinkable return of investment on real estate. We are committed to making this journey a seamless experience for you.
Visit Us at
Head Office:
No 2, Dele Adetoro Street, Bodija Ibadan.
Branch Office:
Suite 101 Block C, Akord Shopping Mall, Along Lekki_Epe, Expressway Bogije, Ibeju-Lekki, Lagos State.
EFCC via its Special Control Unit Money Laundering (SCUML)
We are also accredited by the Real Estate Developers Association of Nigeria (REDAN)
Registered with Corporate Affairs Commission, Nigeria (RC:7080017)
© LandNest Homes & Properties. 2024.