leaseholds

Leaseholds are estates in land or buildings created by a lease, by which the leaseholder has the right to use and occupy the property for a defined period while ownership of the land or building remains with the landlord (the freeholder). The lease is a contract that governs possession, use, and a range of duties and restrictions, and it can be enforceable against successors in title during the term.

Key terms include the length of the lease, periodic rent and any rent reviews, maintenance and repair responsibilities, alterations, insurance, and service charges. The lease may authorize assignment or subletting with the landlord’s consent. The tenant’s right to quiet enjoyment is typically protected, subject to covenants and statutory rules.

Types of leaseholds vary by term and scope. Long leases commonly run for 99, 125, or 999 years; short leases are shorter and may complicate mortgage financing. A ground lease covers the land itself, with the buildings or development on it owned by the tenant while the land remains with the landlord. Some leases allow the leaseholder to buy additional rights or extend the term under statutory or contractual provisions.

End of term and renewal often affect leaseholds. When a lease expires, ownership and possession usually revert to the freeholder unless renewal or extension is obtained. In some jurisdictions, leaseholders may acquire the freehold (enfranchisement) or extend the lease by statutory rights. Leaseholds also enable ownership or investment without full ownership of the underlying land, and they can be bought, sold, pledged as collateral, or transferred subject to the lease terms.