What is a primary feature of leasehold property?

A primary feature of leasehold property is that it is limited by a fixed term. This means that the leasehold interest is granted for a specific period, typically defined in the lease agreement, after which the rights to the property revert back to the landlord or property owner. Leasehold property distinguishes itself from freehold property, where ownership is indefinite and permanent.

In a leasehold arrangement, the tenant enjoys the rights to use and occupy the property for the duration of the lease but does not own it outright. Once the term expires, the tenant must vacate the premises unless the lease is renewed or extended. This finite duration is essential in defining what leasehold property represents and reflects its nature of being a temporary right rather than a permanent form of ownership.

In contrast to this, factors like perpetual ownership or the inclusion of personal assets do not apply to leasehold property. Similarly, while leasehold properties can sometimes be mortgaged, this is not a defining characteristic of leasehold itself and depends on the terms of the lease and lender policies.