Land records · Parcel maps · October 6, 2026
What Is a Leasehold Estate? Types and Records
What is a leasehold estate? A tenant's right to possess property for a term under a lease. Types, ground leases, and how leases appear in land records.
What is a leasehold estate? A leasehold estate is the right to possess and use real property for a period of time under a lease, while someone else holds ownership, called the fee or freehold. The tenant holds the leasehold; the landlord holds the reversion, meaning the property returns to them when the lease ends. Leaseholds range from month-to-month apartment rentals to long-term ground leases lasting decades, on which tenants build homes, stores, or offices. This page is general land-records background, not legal advice.
Types of leasehold estates
| Type | Description |
|---|---|
| Estate for years | Fixed term, such as one year or 99 years |
| Periodic tenancy | Renews automatically, such as month to month |
| Tenancy at will | Ends when either party chooses, with notice |
| Tenancy at sufferance | Tenant stays after the lease ends without permission |
Leasehold vs freehold
A freehold, such as fee simple or a life estate, is ownership of an estate in land. A leasehold is a possessory right granted by the owner for a term. Leaseholds are often treated as personal property in law even though they involve land.
Ground leases
In a ground lease, the tenant leases the land for a long term, often 50 to 99 years, and owns or builds the improvements. When the lease ends, improvements may revert to the landowner. Ground leases are common for commercial sites and in certain areas for homes and condominiums. See what is a ground lease.
Leaseholds in the land records
Short leases are rarely recorded. Long-term leases, or a memorandum summarizing key terms, are often recorded to give notice of the tenant’s rights, including options and rights of first refusal. See what is a memorandum of lease and what is a right of first refusal.
Leasehold mortgages
Tenants on long ground leases may finance improvements with a leasehold mortgage. Lenders look closely at the remaining lease term, rent increases, and protections if the tenant defaults.
Buying a leasehold home
Buying a home on leased land means paying ground rent and understanding what happens at lease end. Financing and resale can be harder with a short remaining term.
Title insurance
Leasehold title insurance policies are available for tenants with significant investments.
Rights that often come with a lease
Commercial and long-term leases often include extra rights that affect the property beyond simple possession: options to renew, options to purchase, rights of first refusal or first offer, exclusive use clauses in shopping centers, and restrictions on what the landlord can build nearby. When recorded, these rights can bind later owners of the fee. Buyers of leased property should review every lease and estoppel certificate, in which tenants confirm the lease terms and that no defaults exist. Lenders typically require subordination, non-disturbance, and attornment agreements that set the order of priority between the lease and the mortgage.
Bottom line
A leasehold estate is a tenant’s right to possess property for a term under a lease, ranging from month-to-month rentals to 99-year ground leases. Long leases are often recorded or summarized in a memorandum. Check remaining term, rent, and reversion terms before buying or financing a leasehold. Find county recorders via the Platbookmapper map.
What is a leasehold estate FAQ
What is the difference between leasehold and freehold?
Freehold is ownership; leasehold is a right to possess for a term.
What is a ground lease?
A long-term lease of land on which the tenant builds or owns improvements.
Are leases recorded?
Long-term leases or memoranda of lease often are; short leases usually are not.
Can you get a mortgage on a leasehold?
Yes, leasehold mortgages are common for long ground leases.
What happens when a ground lease ends?
Improvements may revert to the landowner, depending on the lease terms.