A Leasehold Estate is less than a freehold estate.
A leasehold interest or leasehold estate occurs when an owner rents real property to a tenant in return for something of value (money).
The tenant possesses a leasehold estate and the landlord possesses a Leased Fee Estate. The leaseholder has the right of possession.
The leasehold estate remains intact even if the property is sold. A new owner may not evict the tenant just because he has purchased the building, therefore, the lease is an Encumbrance on the property.
|•||The Lessor is the owner of property who transfers the rights of its use to another. The lessor is usually called the landlord.|
|•||The Lessee is the one who uses the lessor's property in exchange for paying rent. The lessee is usually called the tenant.|