What does "leasehold" refer to in real estate?

"Leasehold" in real estate specifically refers to a property interest held for a certain period under a lease. In a leasehold arrangement, the tenant receives the right to occupy and use the property for a defined term, as specified in the lease agreement. This contrasts with ownership, where the individual possesses outright ownership of the property.

Leasehold interests are common in situations where the land is owned by one party, but there are agreements with tenants to use that land for a specified duration. It’s important to understand that, while the tenant has exclusive rights to the property during the lease term, they do not own the property itself; ownership remains with the landlord.

This definition is fundamental in real estate because it influences the rights and responsibilities of tenants and landlords, financial arrangements, and the duration of occupation, which can affect property valuation and investment strategies.