A leasehold is a form of land or property tenure where one party buys the right to occupy land or a building for a given time. In a leasehold, the lessee or tenant has rights of real property by some form of title from a lessor or landlord. The leasehold differs from a freehold or fee simple where the ownership of a property is purchased outright and held for an indeterminate length of time, and also differs from a tenancy where a property is let periodically such as weekly or monthly.

Leasehold arrangements are more common throughout Europe, but they can also be found in the United States, particularly in New York, Florida, and Hawaii. Leaseholds are more common for commercial property where malls and other businesses can be built on the land, but they also exist for residential purposes, such as houses and condos.

Key features of a leasehold include:

• Ownership: A leasehold is a personal property that you own for a certain amount of time without owning the land that it is built on.

• Lease Agreement: The terms of the agreement are contained in a lease, which has elements of contract and property law intertwined.

• Fixed Period: The leaseholder can remain in occupation for a fixed period, measured in months or years.

• Rent: The leaseholder pays rent to the lessor or landlord for the right to occupy the property.

• Restrictions: There may be restrictions on how you can alter your leasehold property, meaning you are unable to make significant internal changes, add an extension, or change its use (from residential to commercial), unless you apply to the freeholder for permission.

At the end of the lease, the property or land reverts back to the owner, improvements and all, unless the contract stipulates otherwise or a longer lease is negotiated.