What is the difference between freehold and leasehold estates?

A freehold estate grants ownership of real property for an indefinite or unlimited duration, such as a fee simple or life estate. A leasehold estate grants the right to use and occupy property for a fixed period without ownership, such as a rental agreement. Freehold estates are inheritable or transferable through sale, while leasehold estates expire at the end of the lease term. The fundamental distinction is ownership versus possession: freehold holders own the property, leasehold holders merely possess the right to use it temporarily.