leasehold

noun lease·hold \ ˈlēs-ˌhōld \
Updated on: 13 Oct 2017

Definition of leasehold

1 : a tenure by lease
2 : property held by lease

leaseholder

noun

Recent Examples of leasehold from the Web

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.


Law Dictionary

leasehold

noun lease·hold \ ˈlēs-ˌhōld \

legal Definition of leasehold

: a tenure of real property held by a lessee under a lease : a lessee's estate in the property; also : the property so held — compare fee, freehold

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