What is defined as a 'Leasehold interest'?

A leasehold interest is best understood as the tenant's interest in a property they are leasing. This interest arises from a lease agreement, which grants the tenant the right to use and occupy the property for a specified period, while the landlord retains ownership of the property itself. The leasehold interest allows the tenant to enjoy the property as their own during the term of the lease, though they do not hold title to the property itself.

This concept is crucial in real estate, as it delineates the rights and responsibilities of tenants versus landlords. The tenant's use of the property is typically subject to certain conditions laid out in the lease, such as payment of rent, maintenance obligations, and use restrictions. Understanding leasehold interests is essential in various contexts, including property management, assessing tax values, and navigating landlord-tenant disputes.

The other choices refer to different concepts related to property interests: the landlord's interest pertains to the property ownership and the rights that come with it, the government's interest reflects zoning and regulatory controls, and shared ownership describes a different arrangement for property ownership that does not fit the definition of a leasehold.