| Leasehold Estate in Real Estate |
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The tenants right to possession and uninterrupted use of a leased property is the leasehold estate .When a property is leased, the lease agreement spells out the right of the lessor and the lessee of the property. Here, the title of the property concerned remains with the owner of the property while the right to use and quite enjoyment is vested in the tenant. The right to use the property is limited to the period of time agreed between the parties concerned and is subject to termination or extension as agreed by the parties. There is no absolute and comprehensive ownership in leasehold estate. After a lapse of a given period of time, the property reverts back to the grantor. This type of estate can be bought and sold when need arises. However, the ownership of the property cannot be purchased outright. The property is held for indeterminable period of time. The holder of the leasehold estate has every right and privilege to remain in the property while paying the agreed rent to the owner. A lease period is usually 999 years but there is variation in different regions. If the lease is for a shorter period of time, none of the parties is compelled to renew the contract but can be done with mutual consent. Leasehold estates take many forms .The common ones are the periodic tenancy which can be renewed or not after the expiry of the period of time. Either the lessor or the lessee can terminate the tenancy agreement any time by giving a notice to the other party within acceptable period of time. The landlord can terminate the lease contract by giving a six month notice to the tenant while the tenant must give the landlord a notice equivalent to the length of one period of the tenancy. Tenancy at will can be terminated at the wish of any of the parties. Fixed term tenancy has some restrictions attached in that both the tenant and the landlord cannot cancel it without paying a penalty. When other conditions are attached to the agreement such as cancellation of the lease agreement when a certain event happens and upon the occurrence of the stated event, the lease will be terminated. Leasehold estate in real estate expires. When a tenant is legally in possession of the asset during expiry, varying circumstances may arise. This is mainly dependent of the laws applicable in the country where the lease is situated. Both the landlord and the tenant have duties and obligations. The landlord should put the leasehold estate in a habitable condition. Also, it is the duty of the landlord to put the property in the possession of the tenant and ensure quite possession. He should not at any instance evict the tenant either partially or fully. The tenant should pay the landlord the applicable rent and protect the property from deterioration. Generally, leasehold estate offers the tenant absolute right to use the property. However; he should pay rent for using it. The landlord should ensure that he fulfils his duties and responsibilities as per the contract of lease. The views expressed in this article are not those of the website owner. |