Lease Fee Law and Legal Definition

Lease fee is defined as an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease.

In contrast, fee simple is defined as absolute ownership unencumbered by any other interest or estate. The conveyance of rights to others affects the property's value. For example, a single-family owner-occupied property has fee simple property rights that are absolute and unencumbered, unlike a leasehold estate where property rights are limited to use and occupancy for a stated term. An appraiser often is used to determine to what extent, if any, the transfer of property rights impacts the property's value.