Headlease

Part of speech: noun

Definitions

1. A principal agreement allowing the tenant to possess and utilize a property while retaining the right to sublet or grant leases to others
2. An overarching lease that grants the primary tenant the authority to manage and lease a property, including subletting rights
3. A primary lease contract that enables the tenant to occupy and control a property while permitting them to create subordinate lease agreements

Etymology: "Headlease" is a compound formed from "head," in the sense of a chief or principal, and "lease," a grant of possession of property for a set period. The "head" element signals that this is the primary agreement in a chain: the headlease sits at the top, and any further agreements made by the tenant beneath it, such as subleases, depend on it. The compound is a plain, transparent formation, so the word's meaning can be read directly from its two parts. The practical logic of the term explains its existence. A tenant holding a headlease can occupy the property and also pass on some or all of that right to others, so the original arrangement between landlord and head tenant needs a name that distinguishes it from the derivative arrangements below it. Property law has long relied on this layered structure, and the word exists to name the top layer.