CurveBlock
Freehold ownership confers outright ownership of land and buildings, subject to planning and statutory obligations. Leasehold gives a leaseholder rights to occupy for a term set out in a lease, with the freeholder retaining reversionary rights. Commonhold is designed for multi-occupancy buildings to provide collective management without long leases. Each structure creates different cash-flow profiles and liability exposures: service charges, ground rents, repair obligations and sinking funds are typical features of leasehold and commonhold arrangements that affect net income.
From a fractional investor perspective, the fund vehicle’s exposure to these property rights matters. A fund owning leasehold residential units will face renewal risk, lease length concerns and potential liability for communal maintenance. Conversely, owning freehold or portfolio-level interests may reduce certain tenant-facing risks but can concentrate exposure to capital expenditure. Title, covenants and third-party rights (such as roof licences for solar) will determine what income streams are secure and how costs are allocated.
When property ownership is fractionalised via digital shares, the underlying legal rights do not disappear. Retail investors should expect clear mapping from the token to the legal interest the fund holds, explanations of who manages landlord obligations, and transparent reporting on service charges, major works and title encumbrances. That transparency helps everyday savers assess the quality of the property exposure they hold through fractional digital shares.