leasehold


Also found in: Dictionary, Thesaurus, Financial, Encyclopedia, Wikipedia.

Leasehold

An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time.

leasehold

n. the real estate which is the subject of a lease (a written rental agreement for an extended period of time). The term is commonly used to describe improvements on real property when the improvements are built on land owned by one party which is leased for a long term (such as 99 years) to the owner of the building. For example, the Pacific Land Company owns a lot and leases it for 99 years to the Highrise Development Corporation which builds a 20-story apartment building and sells each apartment to individual owners as condominiums. At the end of the 99 years the building has to be moved (impossible), torn down, sold to Pacific (which need not pay much since the building is old and Highrise has no choice), or a new lease negotiated. Obviously, toward the end of the 99 years the individual condominiums will go down in value, partly from fear of lessened resale potential. This is generally theoretical (except to lending companies because the security does not include the land) since there are few buildings with less than 50 or 60 years to go on the leases or their expected lifetimes, although there are some commercial buildings which are within 20 years of termination of such leases. In most cases the buildings are obsolete by the end of the leasehold. (See: lease)

leasehold

noun estate for a fixed term, estate for a fixed term of years, estate in realty, freehold, interest in real essate, interest of a lessee, land held by lease, land leased, propprty leased, real property subject to a lease, tenure by lease
See also: land, property

leasehold

holding under a LEASE.

LEASEHOLD. The right to an estate held by lease.

References in periodicals archive ?
Mr David Lock, a Minister in the Lord Chancellor's Department, said: "Commonhold has been a long time coming, but we are determined to give people a viable alternative to leasehold.
Chesapeake's Fort Worth Barnett Shale leasehold position now totals approximately 220,000 net acres, including approximately 180,000 net acres in the Core and Tier 1 area "sweet spot" of Johnson, Tarrant and western Dallas counties.
Leasehold properties are typically flats, while most houses are sold as freehold properties, which means the buyer owns them outright.
We have acted swiftly to take targeted and tangible action over concerns about leasehold sales on new-build homes and, where leasehold is already the tenure, I am setting up a new group to recommend reforms to the system.
As with other projects in Britain, we considered selling on the leasehold land to a third party.
Leasehold can start out cheaper but unlike freeholders who own the land where the property sits, leaseholders pay "ground rent".
The scandal forced the Government act last week when they agreed to ban the sale of leasehold new-build homes and pin ground rent at a peppercorn rate.
A PS130million compensation bill to pay for its rip-off leaseholds meant profits dived 23.
Developments where properties are sold on a leasehold basis are common across North Wales.
Leasehold generally applies to flats with shared spaces, but developers particularly in the north west - have been increasingly selling houses on these terms.