Buying guide
Freehold vs Leasehold Private Islands
Freehold and leasehold are not simply better and worse. A registered lease in a stable jurisdiction can be more secure than freehold in a market with weak registration, and in several island regions leasehold is the only lawful route.
By Private Island Listings Editorial Team · Last updated 2026-08-20
What each actually gives you
| Freehold | Long leasehold | |
|---|---|---|
| Duration | Indefinite, subject to law | Fixed term with renewal mechanics |
| Ongoing payments | Taxes only | Ground rent plus taxes |
| Transfer | Usually free, subject to permits | Often requires landlord or state consent |
| Financing | More widely accepted | Depends on remaining term |
| Improvements | Owned indefinitely | May revert at lease end |
How to assess a lease
- Remaining term relative to your intended holding period and financing
- Whether renewal is a contractual right or a negotiation
- Rent review basis and any indexation
- Consent requirements for assignment, mortgage and subletting
- Development or operating obligations attached to the lease
- The identity of the underlying owners and the state of that relationship
When leasehold is the right answer
In markets where customary or state ownership is the norm, a well-structured lease is the standard investment instrument and underpins many established properties. Refusing leasehold on principle simply removes those regions from consideration.
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