Leaseholder

A leaseholder is a person or corporate entity that holds a lease to use and occupy real estate under an agreement with the property's owner or freeholder. The lease gives exclusive possession of the premises for a defined term, but the leaseholder does not own the land or building itself; ownership remains with the freeholder or landlord.

In many jurisdictions, particularly the United Kingdom, leaseholders own a lease on a dwelling (often a flat) or a commercial unit. Leases are commonly long-term, such as 99, 125, or 999 years. The lease sets out conditions including rent, ground rent, service charges, and responsibilities for maintenance and certain covenants or restrictions on use and alterations. The freeholder or managing agent typically handles structural works and major repairs, with costs passed to leaseholders through service charges.

Rights and obligations accompanying a lease include paying rent and service charges, maintaining the interior of the property, and complying with covenants (such as limits on subletting or alterations). Leaseholders generally have the right to quiet enjoyment and may have avenues to extend the lease or purchase the freehold (enfranchisement) under applicable laws. They may also have rights to participate in management and, in some jurisdictions, to challenge unreasonable charges or seek reform of lease terms.

Context varies by country. In the United States, the term leaseholder is less common; the occupant is typically referred to as a tenant or lessee, and the legal framework treats the interest as a leasehold estate. Overall, the leaseholder’s interest is contractual, tied to the lease term and covenants, rather than outright ownership of the property.