What is a leasehold estate?

A leasehold estate refers to an interest in real property where the holder, typically a tenant, is granted the right to use and occupy the property for a specific period of time as defined in a lease agreement. This arrangement involves a contract between the property owner (landlord) and the individual or entity that will occupy the space (tenant). The leasehold estate does not provide ownership of the property itself; rather, it grants the tenant certain rights to use the property as stipulated in the lease terms, which could range from months to several years.

This type of estate is essential in real estate as it distinguishes between ownership and temporary occupancy rights. It's important for individuals to understand the nature of their rights under a leasehold estate, as these rights will expire at the end of the lease term unless renewed or extended by mutual agreement between the landlord and tenant.