A leased fee occurs when a property owner leases his property to another.
Generally, the owner has all the rights of ownership except possession which he has given up by leasing the property. The owner's rights in a leased fee are:
|•||Right to rental income|
|•||All normal rights in the bundle of rights except the right to possess (occupy) the property which have been given to another in return for rent payments|
If an owner exercises one of his rights such as selling or optioning the property the leasehold is not affected.
The leased fee estate may or may not be worth more than the estate unencumbered by a lease (fee simple).