Definition of leasehold
1
:a tenure by lease
2
:property held by lease
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In November, ConocoPhillips announced its intent to sell up to $8 billion of mostly North American natural gas assets, which would include all of the 1.3 million acres of leasehold in the San Juan Basin.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'leasehold.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of leasehold
1710
Financial Definition of LEASEHOLD
leasehold
What It Is
A leasehold is an accounting category that contains leased assets.
How It Works
For example, let's say that Company XYZ leases a widget-making machine from Company ABC. It pays $2,000 a month to lease the asset. It also pays $1,000 a month to lease two delivery vehicles, $3,500 a month for office space, and $400 a month for a couple of billboards around town. These are Company XYZ's leaseholds.
Leaseholds can also be for cars, manufacturing equipment, office space, photocopiers, musical instruments, solar panels, or virtually any other asset. Generally, leases are handy when one party has the capital to purchase the asset and another party does not have the capital to do so but would like access to the asset.
Why It Matters
Leaseholds designate which assets aren't really the lessee's property. Accordingly, these are assets that companies must account for them in particular ways.
Source: Investing Answers
Law Dictionary
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