What is a leasehold?
A leasehold is a type of land ownership where the owner holds the right to use the land for a set period of time, rather than owning it outright the way fee simple ownership works.
Why does a leasehold matter?
Leasehold arrangements affect what a homeowner can actually do with their property long-term, and what happens when the lease term eventually expires, questions that matter a great deal to anyone buying into a leasehold community without realizing it.
When You’ll Run Into This
This distinction mostly comes up during a property purchase or refinance, when a buyer or lender needs to understand exactly what kind of ownership they’re actually getting.
Legal note: this is general information, not legal advice. Rules and requirements vary by state and by community, so it is worth checking with your association’s attorney to get an accurate answer for your specific situation.
