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Definition of 'Leasehold'

A leasehold is a type of real estate ownership in which the tenant (or lessee) has the right to occupy a property for a specified period of time, typically in exchange for rent payments. The landlord (or lessor) retains ownership of the property and is responsible for its maintenance and upkeep.

There are two main types of leasehold estates:

* **Fixed-term leasehold:** This type of leasehold agreement has a specific end date, after which the tenant must vacate the property.
* **Indefinite leasehold:** This type of leasehold agreement does not have a specific end date, and can be terminated by either the landlord or tenant at any time, subject to the terms of the lease agreement.

Leasehold estates can be used for both residential and commercial properties. In the case of residential properties, leasehold agreements are often used for apartments and condominiums. In the case of commercial properties, leasehold agreements are often used for office buildings, retail stores, and warehouses.

There are a number of advantages to owning a leasehold property. First, leasehold properties are typically more affordable than freehold properties. This is because the tenant does not have to pay for the property's purchase price, and only has to pay rent for the duration of the lease agreement. Second, leasehold properties often offer more flexibility than freehold properties. For example, leasehold agreements can be terminated more easily than freehold titles, and tenants may have more rights to make alterations to the property.

However, there are also a number of disadvantages to owning a leasehold property. First, leasehold agreements can be restrictive. For example, the tenant may be required to abide by certain rules and regulations set forth by the landlord. Second, leasehold agreements can be expensive. In addition to rent payments, the tenant may also be responsible for paying for property taxes, insurance, and maintenance costs. Third, leasehold agreements can be uncertain. The tenant may not know what will happen to the property after the lease agreement expires.

Overall, leasehold estates can be a good option for both residential and commercial property owners. However, it is important to carefully consider the advantages and disadvantages of leasehold ownership before making a decision.

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