What is leasehold interest?

Leasehold interest is a concept from real property law that is defined as the right to enjoy the exclusive possession and use of a property for a defined period of time. There are four different kinds of leasehold interest:

• Tenancy for years: A tenancy where the length of the lease is known from the moment of its creation
• Periodic tenancy: Also known as a a month-to-month lease
• Tenancy at will: A tenancy that may be terminated by either the landlord or the tenant upon notice
• Tenancy at sufferance: A tenancy arising when a party wrongfully remains in possession after a prior, lawful possession expired

Your leasehold interest is an asset that can be traded for economic value just like any other physical asset.