What is a Leasehold Interest?

What is a Leasehold Interest?

A leasehold interest in real estate is a tenant's right to use and occupy a property for a specified period under the terms of a lease agreement, where the tenant pays rent and adheres to conditions set by the property owner. This interest can apply to residential, commercial, or land (ground leases) and involves various types of leases such as fixed-term, periodic, and tenancy at will. Leasehold interests can be transferred or sold, subject to lease terms, and may involve tenant responsibilities for property maintenance and improvements.