They derive from the fundamental theory that the landlord's obligations under a lease are (unless otherwise specified) covenants independent of the tenant's obligation to pay rent as a consequence of tenant's
leasehold estate interest in the premises.
The owner, M & T Enterprises, was apportioned the entire award of $100,000, but the court found that Walgreen had not offered evidence that its
leasehold estate had sustained any loss as a consequence of the taking.
The accelerated tax benefit from the amortization of a
leasehold estate would be a valuable tax shield, but the courts have denied the deduction numerous times (although not in recent cases), and the statute and regulation adopt that interpretation.
Unless rent escalations are determinable, the leasehold mortgagee may not be able to evaluate the "fair market value" of the
leasehold estate to determine whether the leasehold mortgagee has satisfied its legal investment requirements.
A stipulation that the lessee may encumber its
leasehold estate (use it for collateral when obtaining financing) without having to obtain the landlord's consent.
However, a mechanic's lien may be unenforceable against a property owner if the materials are supplied on contract with a leaseholder making improvements to a
leasehold estate. If the leaseholder defaults on payment, or files for bankruptcy protection, then the material supplier may be without a remedy, while the property owner receives a benefit without besting a burden.
Much of the history of Sutherland is the history of a large-scale residential
leasehold estate, created in 1881 from 12,000 acres of the 13,000-acre property of Thomas Holt.
* words that indicate the present transfer of the
leasehold estate such as "the landlord hereby leases ..."
Another potential financial benefit to be received by the landlord is a transfer fee paid whenever there is a market transfer (sale) of the
leasehold estate to an unrelated third party or when cumulative transfers to related parties exceed a certain percentage of the
leasehold estate.
In an earn-in basis, CUBO will finance USD1,575,000 for the production of an initial Ellenburger well and finance drilling programmes of two additional wells on the South 40 acreage of the JB Tubb
Leasehold Estate.