What is Lease Hold?
A property marked Lease Hold (LH) means that the land itself is owned by a leaseholder. You own the buildings but not the land. Most property in Hawaii is Fee Simple (FS) as opposed to Lease Hold. Lease Hold property exists because back before the Hawaiian Islands were a part of the US, parcels of land were purchased by individuals who placed them in trusts. These trusts continue to this day, often handed down from generation to generation. If you do not intend to pass your property to heirs, Lease Hold may be an attractive, and often less costly alternative. Be sure to read the terms closely to determine the length of the lease and any other special considerations.
