Which statement about leaseholders is true?

• A. They own the freehold
• B. They do not have rights over the land
• C. They have possessory rights under the lease terms
• D. They have rights identical to the freeholder

Answer: (C)

Leaseholders have a leasehold, which gives them the right to occupy and use the property for a defined period while the freeholder retains ownership of the land. The key point is that their rights are possessory and limited to the term of the lease, subject to the covenants and conditions in the lease. They do not own the freehold, and their rights are not identical to those of the freeholder; at the end of the lease term, ownership reverts back to the freeholder. This is why the statement that leaseholders have possessory rights under the lease terms is the correct description.