Leasehold

Holding a 'leasehold' gives you the right of possession, but not ownership, of a property for an agreed period of time.

Ultimately, ownership remains with the freeholder. The duration of the right of ownership is usually a fixed term granted by the lease.

The lease will set out details of rents and obligations such as repairs etc. Leasehold is in direct contrast to Freehold where ownership is absolute.

A Lessee is a person to whom a lease is granted - to you and me that's the tenant. While a lessor is the person who grants a lease - the landlord.

See also: Moneyextra's Mortgage Centre Mortgage Comparison Service

Last Updated: November 2007 © Moneyextra.com

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