What is a characteristic of a leasehold?

A leasehold is characterized by having a limited duration. In real estate terms, a leasehold refers to an arrangement where one party (the lessee or tenant) holds an interest in a property for a specified period under the terms of a lease agreement. This period can vary in length, typically ranging from a few months to several years. Importantly, the leasehold terminates once the lease expires, meaning the tenant does not possess the rights to occupy the property indefinitely.

The limited duration is what differentiates leasehold interests from freehold interests, where ownership is typically more permanent and not bound by a specific timeframe. The other options do not accurately represent the nature of leaseholds; for example, they can apply to both residential and commercial properties, can often be transferred or assigned to others depending on lease terms, and do indeed have definitive time limits as stipulated in the lease agreement.