Leasehold value refers to value of a leasehold interest. This term applies to a long term lease when the rent paid under the lease is lower than current market rates. In the U.S. some states permit the lessee to claim the leasehold interest from the landlord in a condemnation proceeding, unless the lease prohibits such a claim.
Leasehold value is represented by a price which would be agreed upon by a willing seller and a willing buyer under usual and ordinary circumstances without any compulsion to either buy or sell.[Improved Parcel of Land, etc. v. State, 57 Del. 454, 456 (Del. 1964)].