Also known as: leasehold estate · leasehold · leasehold interest · non-freehold estate
Written by attorneys · grounded in primary & secondary sources — see below
A nonfreehold estate granting the tenant the right to exclusive possession of land for a limited duration in return for rent. The estate ends automatically at the expiration of the stated term or upon the occurrence of a terminating event recognized by landlord-tenant law.
Lila Lin leased a warehouse from Linden Logistics for ten years and received an option to purchase the building at a fixed price exercisable only during the lease term. When Lila attempted to exercise the option two years after the lease ended, Linden Logistics refused. A court applied landlord-tenant rules to determine that the option had expired with the leasehold estate.
Leonard Lowe remained in his apartment after his one-year lease expired. The landlord initiated a forcible entry and detainer action seeking possession. The court treated the leasehold estate as terminated and granted the landlord immediate possession because no new tenancy had been created.
Select any source to read its text and confirm it supports the definition.
Lucia Lopez rented a house from Southall Realty that violated the housing code at the time the lease was signed. When the landlord sued for unpaid rent, the court held that the leasehold estate was unenforceable because the premises were leased in an illegal condition.
Luna Lang leased office space from Reste Realty. Persistent flooding from a roof defect made the premises unusable. After giving notice and vacating, Lang stopped paying rent. The court recognized that the leasehold estate had ended by constructive eviction.
Lucas Lee rented an apartment from First National Realty. Multiple housing code violations rendered the unit unsafe. Lee withheld rent and the landlord sued for possession. The court held that the leasehold estate carried an implied warranty of habitability that the landlord had breached.
Lamar Lewis leased commercial property from Pergola Properties and received an option to purchase that could be exercised only while the lease remained in effect. After the lease term ended, Lewis tried to exercise the option. The court ruled that the leasehold estate had terminated and the option could no longer be exercised.
The four principal leasehold estates are the term of years, the periodic tenancy, the tenancy at will, and the tenancy at sufferance. Each is distinguished by the certainty of its duration and the manner in which it terminates.
Supporting sources
A leasehold estate for a term longer than one year must be evidenced by a signed writing that identifies the parties, the premises, the duration, and the rent. Oral leases for longer terms are unenforceable unless an exception such as part performance applies.
Supporting sources
A holdover tenant remains in possession after the lease term expires without the landlord's consent and may be treated as a tenant at sufferance. A tenant at will holds possession with the landlord's permission and either party may terminate at any time.
Supporting sources
The landlord may sue for the rent due or for possession. Continued possession without payment constitutes a breach of the tenant's obligation under the leasehold estate unless the tenant is legally excused by a material breach by the landlord.
Supporting sources
…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…