The term ‘leasehold estate’ is used to refer a lessee’s/tenant’s ownership of a temporary right to land or property. A lessee’s right to possess the leased premises during the term of a lease can be referred to as a leasehold estate. In a leasehold estate, the lessee/tenant holds rights of property by some form of title from a lessor/landlord.
Under a leasehold estate a tenant is allowed to construct permanent structures upon a parcel of leased land, and derive some use or income from the said structures during the period of the lease. Leasehold estates usually involve long-term leases. As lease is a legal estate, leasehold estate can be bought and sold in the open market.
Leasehold estates are of different types. For example, 'estate for years' is a type of leasehold estate. A definite beginning and ending date of the lease is the defining characteristic of an estate for years lease. When the lease expires, the tenant is expected to vacate the property without the need of notice.