What is a key feature of a leasehold estate?

A leasehold estate is characterized by its temporary nature. This type of estate allows a tenant (lessee) to occupy and use property for a specific duration as outlined in the lease agreement. The essence of a leasehold estate is that it is not a permanent ownership right; rather, it confers a legal interest in the property for a limited period, after which possession reverts to the landlord (lessor).

The lease duration can vary, often ranging from months to years, but the key aspect is that it has a definitive expiration date. This contrasts with freehold estates, which represent permanent ownership. Understanding this temporary arrangement is essential for both landlords and tenants, as it outlines their rights and obligations during the lease term and clarifies what happens at the end of that period.