What does a leasehold represent in property ownership?

A leasehold represents a tenancy without ownership of the land. When a leasehold interest is established, the tenant gains the right to occupy and use the property for a specified period based on the lease agreement, but does not own the property itself. This arrangement distinguishes leasehold interests from freehold interests where ownership of the property itself is conferred.

This understanding of leaseholds is crucial as it highlights the temporary nature of the right to use the property in contrast to actual property ownership. The tenant’s rights are limited to the terms outlined in the lease, which means they cannot make permanent changes to the property or consume any of the profits from selling it, further emphasizing that they do not hold ownership rights against the land itself.