What is the term for a transfer of less than an entire leasehold?

A transfer of less than an entire leasehold is referred to as a sublease. This occurs when a tenant (the original lessee) rents out their leased space to another person (the sublessee) while retaining some rights to the property. In a sublease, the original tenant typically remains responsible for the lease obligations to the landlord, which means they maintain a direct relationship with the landlord even though they have rented out part of their interest in the property.

Subleasing allows tenants the flexibility to share their leased space without fully relinquishing their rights under the original lease agreement. In contrast, an assignment transfers the entire leasehold interest to another party, thereby releasing the original tenant from all lease obligations. The leaseback refers to an arrangement where a property owner sells real estate and then leases it back from the buyer, which is not applicable in this context.

Understanding the nuances of lease arrangements is critical for anyone involved in real estate transactions, as it affects the rights and obligations of all parties involved.