In a leasehold arrangement, who owns the land?

In a leasehold arrangement, the ownership of the land rests with an external entity or another party. This is a fundamental aspect of leasehold agreements. The leaseholder, or tenant, has rights to use and occupy the land for a specified period, as outlined in the lease agreement, but does not own the land itself. Instead, the land may be owned by a private individual, corporation, or government entity, all of which are considered external to the leaseholder.

This structure allows the lessee to benefit from the use of the property without the responsibilities and expenses associated with outright ownership of the land. It also supports specific investment strategies and property development frameworks within real estate, particularly in regions where land is scarce or expensive. Understanding the distinction between land ownership and lease rights is crucial for navigating leasehold arrangements effectively.