Also known as: leaseholds · leasehold estate · leasehold interest
Written by attorneys · grounded in primary & secondary sources — see below
A tenant's possessory estate in land or premises that gives the tenant a present right to occupy the property for a term, with the landlord retaining a reversionary interest.
Lamar Lewis leases commercial space from Logan Lane for a ten-year term and receives an option to purchase the building at fair market value upon expiration. When the lease ends, Lane claims the option lapsed after a reasonable period. The court measures the option's life under landlord-tenant principles because the right is appurtenant to the leasehold estate.
Leo Lynch holds a leasehold interest in land used for a church camp. The county enacts an interim ordinance barring reconstruction after a flood, preventing use for several years. Lynch sues for just compensation. The court treats the leasehold as a compensable property interest whose value must be measured for the period of the restriction.
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Laura Lewis leases an apartment from Luis Lopez under an agreement requiring the landlord to make repairs. When repairs are not made, Lewis withholds rent. The court analyzes the lease as a contract rather than a feudal property conveyance. This approach allows independent covenants and modern remedies for breach.
Lars Lindstrom owns leasehold interests in shoreline lots subject to a multi-year development moratorium. He claims the restriction deprives him of all economically beneficial use during the period. The court compares the moratorium's effect to a temporary taking of the leasehold estate itself.
Lakewood Manufacturing leases a building whose roof is occupied by cable equipment installed without consent. The company sues the cable provider for trespass. The court holds that a permanent physical invasion of the leasehold constitutes a taking regardless of the equipment's minimal size.
Loyal Insurance leases gasoline stations to independent dealers under long-term agreements. A state statute caps the rent the company may charge. The company challenges the cap as a regulatory taking of its leasehold interests. The court evaluates whether the regulation deprives the lessor of distinct investment-backed expectations in the leased properties.
A leasehold gives the tenant a present possessory interest for a limited term while the landlord retains a reversion. A freehold estate, by contrast, may endure indefinitely. The distinction determines which rights and remedies apply under property law.
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Yes. Courts recognize that a leasehold interest has substantial economic value. When regulation prevents all beneficial use for a period of years, compensation may be required for the temporary deprivation of that interest.
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Modern analysis treats leases as contracts, making covenants generally independent. A tenant may therefore pursue contract remedies for breach without first performing its own obligations. This replaces the older feudal rule that treated covenants as dependent.
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Yes. A permanent physical occupation of leased premises, even by small equipment, constitutes a taking of the leasehold. The tenant may recover regardless of the invasion's minimal impact on overall property value.
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…a tenant the property right to have a CATV installation placed on the roof of his building, as an appurtenance to the tenant's leasehold. The short answer is that § 828(1)(a) does not purport to give the tenant any enforceable property rights with respect to CATV installation, and the lower courts did not rest their…