Has the time come for renewed interest in “leasehold” property?

Under common law, a “leasehold” interest was often used to convey a property for a specific period of time.

Often used in commercial real estate, the leasehold is seldom used in the Georgia residential arena anymore. What is commonly referred to these days as a “lease” is actually a “usufruct,” which is a right to occupy and use the property without the conveyance of title.

A true lease is an “estate in land,” in which some form of title actually passes for the duration of the term. It is usually recorded. A leasehold interest can be bought, sold, bequeathed and inherited.

Also, the term of the leasehold conveyance is generally longer than the typical rental. Twenty years is very common in the commercial world on land leases, but the term could be as long as a hundred or even a thousand years!

So has the time come for the bargain and sale of leasehold interests in houses? For would-be buyers that plan on staying in a house for only five years and a seller trying to wait out the current market, it might be just the thing!

Disclaimer: This article is the opinion of the writer and is not intended to be interpreted as legal advice. Always consult with an attorney before participating in any real estate transaction.