Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. A lease is a legal estate leasehold estate that can be bought and sold on the open market and differs from a tenancy where a property is let on a periodic basis such as weekly or monthly. At the end of the lease period (often measured in decades - a 99 year lease is quite common) the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined. A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. ... A lease or tenancy is a contract that tranfers the right to possess specific property. ...
Colloquially, a "lease" is often a formalization of a longer, specific period as compared with a "rental" that created a tenancy at will, terminable or renewable at the end of a short period. A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. ...
The most obvious use for a leasehold mortgage is in connection with a ground lease in order to secure the financing of a purchase of a leasehold interest or a related construction project.
However, a leasehold mortgage can also be used in connection with office, retail or industrial leases in order to provide security for lines of credit, financing of a corporate merger, or to serve as extra collateral to supplement a traditional fee mortgage on another property.
A leasehold mortgage even benefits a landlord by helping commercial tenants to secure loans that improve their financial positions and overall business operations, thus increasing overall stability and allowing for a more reliable stream of percentage rent payments to the landlord as well.
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