A leasehold occurs where a person is able to live on land but has no legal ownership over the land. There are three areas that need to be proven in order to have a leasehold. Firstly, the tenant needs to have the right to stop people from entering the property, including the owner of the land, the landlord. Secondly, there also needs to be a fixed amount of time that tenant is living there, this will usually be defined in the lease, there is no limit to this, it can be a few weeks or for their whole life. Finally, the tenant needs to be paying to stay there, their rent.
A leasehold is a very common form of land ownership, with many people renting land for a specified amount of time, for example, a student will often rent a house for their second and third years, which is a leasehold. Finally, a lease will usually have to be written in an official document, a contract, so as to protect the rights of both the landowner and the tenant.
Lease – A lease is a contractual arrangement calling for the user to pay the owner for use of an asset
Tenant – a person who occupies land or property rented from a landlord