Leasehold Interest
Leasehold interest refers to the rights a person or entity holds when they lease a property, meaning they have permission to use and occupy the property for a specified period under a lease agreement. The leaseholder does not own the property outright; instead, they pay rent to the actual owner (the lessor) and follow the lease terms. This arrangement can last from a few months to many years, and at the end of the lease, the rights return to the owner. Leasehold interests are common in real estate, allowing people to use properties without full ownership.
Additional Insights
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A leasehold interest refers to the right to occupy and use a property for a specified period, as agreed in a lease contract with the owner (the landlord). While the leaseholder does not own the property, they have a legal claim to use it and enjoy its benefits, typically by paying rent. Leasehold agreements can vary in duration, ranging from short-term leases to long-term arrangements, such as 99 years. When the lease expires, ownership and rights revert back to the landlord, unless the lease is renewed or extended.