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leasehold definition - finance
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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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