What is leasehold?
Leasehold is the right to use land or a building for a fixed number of years under a lease, after which it returns to the owner. Where foreigners cannot own land — Indonesia, the Philippines — a long registered lease is a common way to secure a villa or surf-camp site.
Last updated · Buying & ownership glossary
About Leasehold
What a leasehold is worth depends on the years left on it, whether it can be extended and on what terms, and whether the lease can be sold or passed on.
- Also called
- long-term lease, hak sewa
- Where it applies
- Indonesia, Philippines
This is general information, not legal advice. Confirm with a licensed local attorney before you buy.
Related terms
- Hak milik
- Hak milik is freehold ownership of land in Indonesia, the strongest land title there, and it is reserved for Indonesian citizens. Foreigners cannot hold it, and arrangements that put a foreigner's land in an Indonesian nominee's name are not legally protected.
- Hak pakai
- Hak pakai (right to use) is an Indonesian land title that a foreigner holding a residence permit can use for a home. It is granted for a fixed initial term that can be extended and renewed.
- Condominium foreign-ownership cap (Philippines)
- Foreigners cannot own land in the Philippines, but they can own condominium units, provided foreign ownership in the condominium project as a whole stays at or below 40%.