What is the difference between Fee Simple and Leasehold?
Ownership is the difference. With fee simple, you literally own and control the land until you sell or pass that ownership on to someone else. The leasehold system allows you the use of the land with stipulations of rents to be paid and the duration of this rental agreement. Lease terms and conditions vary so judge them case-by-case. There should be a difference in value in the properties depending on those stipulations. • Fee simple is the normal method of ownership of real estate. You will own the structure(s) on a parcel of land and also own the parcel of land the structure(s) is/are on. • Leasehold simply means you own the right to occupy the property based on the terms of the lease. You can think of it as if you have a very long lease on a rental property. At the end of the lease, you will be moving on to another property.
