An estate for years, while it may sound like some type of ownership degree, it is in fact a reference to a lease for a specific period of time. In such a lease agreement, there is a clear start and end time. Usually the lease is for at least a couple years as the name implies, however can even be for a period of a few months.
There is a clear start and end time, including the terms of the agreement which is the payment amount, payment date, and others. The lease expires on the end date of the agreement. Neither the landlord or tenant are required to extend the agreement, however if they wish they can renew the lease or get on a month to month lease agreement.
What is different about this lease over other years is that it is usually for a much longer period of time than standard leases. Therefore, the tenant has the ability to build on the property they are renting, either for a business or for residential purposes. In this regard, the tenant almost has an ownership right with their capacity to act, although not officially because of course they are not an owner.
Example of Estate for Years
In the past, many leases utilized estate for years to ensure that the lessee would remain in place for a significant period of time. Oftentimes an estate for years was for 99 years. This almost always benefited the tenant because the tenant could maintain the same lease rate for a significant period of time. It also benefited the landlord because it ensured the landlord would have the property leased indefinitely without the need to find a new tenant. In many situations however the tenant in a 99 year lease would get the better benefit because they could lock a rental rate without the fear that their property rent would increase.
