Leasehold
Direct definition
A leasehold is a form of property ownership where the buyer owns the structure but leases the underlying land for a set term.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Unlike fee simple ownership, where a buyer owns both land and structure outright, a leasehold estate means the land is leased — often for decades — from a separate landowner, with lease terms affecting financing and resale.
Why it matters
Financing leasehold properties can be more complex, since lenders review the remaining lease term and terms of renewal before approving a loan.
Where you may see it
- Title reports for leasehold properties
- Ground lease agreements
- Condominium and land-lease community disclosures
A real-world example
Educational and illustrative only
A common misunderstanding
A leasehold is not the same as renting month-to-month; leasehold interests are typically long-term and can be bought, sold, and financed.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026