leasehold investment & finance definition

An asset that gives the holder the right to use the property under a lease. A leasehold is a fixed asset and thus depreciates over time. Improvements to the property are called leasehold improvements. The cost of the improvement is added into the fixed asset. A leasehold may be used by businesses that rent an office or factory. In some situations, houses may be sold through a leasehold, which gives the purchaser the legal right to occupy property for a specific period of time, such as 99 years. This practice is more common in the United Kingdom than in the United States.