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Leasehold Tenure Explained

Leasehold tenure is a type of property ownership where an individual or organization owns a piece of land or a building, but only has the right to use and occupy it for a set period of time, known as the term of the lease. This contrasts with freehold tenure, where the owner holds the property indefinitely. In leasehold tenure, the property is owned by a landlord or freeholder who retains ownership and control over the land and building, while the tenant has exclusive use of the property during the lease period.

What are the Key Features of Leasehold Tenure?​

* Definition of Leasehold Tenure *​

Leasehold tenure is often associated with urban properties such as flats and apartments, but it can also apply to other types of buildings like offices and shops. The key features of leasehold tenure include:

  • Rent payments: The tenant pays a rent to the landlord for the use of the property.
  • Lease period: The lease is usually granted for a specific period of time, after which it may be renewed or come to an end.
  • Termination clause: Both parties must agree on how the lease will be terminated when it comes to an end.
  • Maintenance and repairs: The tenant is responsible for maintaining and repairing the property during the lease period, although this can vary depending on the terms of the lease.

* Types of Leasehold Tenure *​

There are different types of leasehold tenure, including:

  • Long leases: These are granted for a long period of time, often 99 years or more.
  • Short leases: These are granted for a shorter period of time, often less than 99 years.

* Advantages and Disadvantages of Leasehold Tenure *​

Leasehold tenure has its advantages and disadvantages. Some benefits include:

  • Flexibility: Leases can be easily transferred or assigned to other parties.
  • Less capital outlay: The tenant does not need to pay the full purchase price of the property upfront, as they are only paying rent for a set period of time.

However, leasehold tenure also has some disadvantages:

  • Limited control: The tenant may have limited control over the property during the lease period.
  • Renewal challenges: Leases can be difficult to renew or extend, especially if there are disagreements between the parties involved.