Leasehold Interest
The tenant's interest in a leased property — the right to occupy and use it for the lease term. A leasehold has positive value when contract rent is below market rent, common in long-term ground leases.
Related Terms
Leased Fee Interest
The landlord's interest in a leased property: the right to receive contract rent during the lease term plus the reversion of the property when the lease ends.
Ground Lease
A long-term lease of land only, with the tenant constructing and owning the improvements during the term.
Contract Rent
The rent actually specified in a lease, as opposed to market rent — what the space would command today.
Market Rent
The rental income a property would most likely command on the open market, based on analysis of comparable rental properties in the area.
More in Legal & Regulatory
View allUniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)
FIRREAThe 1989 federal law that established the modern appraisal regulatory framework, requiring state licensing of appraisers and USPAP compliance for all federally related real estate transactions..
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.