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Simple English definitions for legal terms
leasehold interest
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A quick definition of leasehold interest:
A leasehold interest is when someone rents a property for a certain period of time. It's like borrowing a toy from a friend for a little while. The leaseholder has the right to use the property, but they don't own it. The leasehold interest is the value of the lease itself, which is calculated by subtracting the remaining rent from what it would cost to rent a similar property for the same amount of time.
A more thorough explanation:
A leasehold interest refers to the rights and obligations of a tenant or lessee under a lease agreement. It is the interest that a tenant has in a property for the duration of the lease.
For example, if a business owner leases a commercial space for 10 years, their leasehold interest is the right to use and occupy that space for the duration of the lease. They have certain obligations, such as paying rent and maintaining the property, but they also have certain rights, such as the right to exclusive use of the space.
In the context of eminent domain, leasehold interest refers to the value of the lease itself. If the government takes the property through eminent domain, the tenant may be entitled to compensation for the remaining value of their leasehold interest. This is calculated by subtracting the rent the tenant would pay for similar space for the same period from the total remaining rent under the lease.