{"id":98694,"date":"2025-02-12T12:35:12","date_gmt":"2025-02-12T20:35:12","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=98694"},"modified":"2025-02-12T12:35:12","modified_gmt":"2025-02-12T20:35:12","slug":"what-is-a-leasehold-property","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/what-is-a-leasehold-property\/","title":{"rendered":"What Is a Leasehold Property & Is It Right For You?"},"content":{"rendered":"

If you’re shopping for a <\/span>condo in Miami<\/span><\/a> or a <\/span>property in NYC<\/span><\/a>, you might come across a great deal, only to see “leasehold property” in the fine print. What exactly does that mean? And more importantly, is it a smart investment or a financial headache waiting to happen? In this Redfin article, we break it down so you can decide whether a leasehold property is a smart move or a potential pitfall.<\/span><\/p>\n

\"aerial<\/p>\n

What is a leasehold property?<\/span><\/h2>\n

A leasehold property means you own the building but not the land it sits on.\u00a0 Instead, you lease the land from the freeholder (landowner) for a set period, which could be anything from a few decades to 99 years or more. When the lease runs out, ownership of the property typically reverts back to the landowner, unless you negotiate an extension (which usually comes at a cost).<\/span><\/p>\n

This is <\/span>different from fee simple ownership<\/span><\/a> (or “freehold” in some places), where you own both the land and the building outright\u2014forever.<\/span><\/p>\n

How leasehold properties work\u00a0<\/span><\/h2>\n

A leasehold property works similarly to renting, but with longer-term implications. When you purchase a leasehold property, you own the physical structure\u2014whether it\u2019s a house, condo, or apartment\u2014but not the land it sits on. Instead, you enter into a long-term lease agreement with the landowner (known as the freeholder), granting you (the leaseholder) the right to use the land for a fixed period. These leases can last anywhere from a few decades to over a century, but once the term expires, ownership of the property typically reverts to the freeholder unless an extension is negotiated.<\/span><\/p>\n

Leasehold ownership comes with additional costs and obligations. Here\u2019s what you need to know:<\/span><\/p>\n