leasehold
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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