What defines a Leasehold interest?

A leasehold interest is defined as a tenant's interest under a lease agreement. This type of interest arises when a property owner (the lessor) grants possession and use of their property to a tenant (the lessee) for a specified period, under certain agreed-upon conditions. The tenant does not own the property outright; instead, they have the right to use and occupy the property for the duration of the lease, which can vary in length depending on the terms agreed upon. This legal relationship is characterized by the tenant's rights to possession and enjoyment of the property while also being subject to the lease terms set by the property owner.

In contrast, absolute ownership of property represents full ownership rights, including the right to sell, mortgage, or transfer the property, which is not applicable in a leasehold scenario. A form of life estate involves rights that exist only during the lifetime of the individual, limiting its duration in a manner distinct from a leasehold. An easement pertains to a right to use another person's land for a specific purpose and does not convey ownership or possession of the property itself, further distinguishing it from a leasehold interest.