What is the difference between leasehold and fee simple property in Kona?

In Kona, fee simple means the buyer owns both the home and the land. Leasehold means the buyer owns the home or condo but leases the land under it for a set number of years. Kona Realtor Maile Woodhall of Kona Organic Real Estate helps buyers understand which one they are looking at before they make an offer.

Key takeaways

• Fee simple means you own the home and the land.

• Leasehold means you own the home or condo and lease the land for a set term.

• The remaining lease term and the lease rent matter more than the price.

• A short remaining term can limit loans and resale.

The basics

Leasehold listings in Kona often look like bargains. A leasehold condo in Keauhou or Kailua-Kona can be priced far below a similar fee simple unit. The lower price reflects the fact that the land is leased, and the lease will one day end.

Maile Woodhall walks buyers through the questions that matter with a Kona leasehold. How many years are left on the lease? What is the lease rent today, and when can it go up? What happens to the home when the lease ends? Can the fee interest be purchased?

The remaining lease term also affects financing. Many lenders want the lease to run well past the end of the loan, so a short lease can limit a buyer to cash or special loan programs. It also affects resale value later.

Leasehold is not always a bad choice. For some Kona buyers, a leasehold condo is an affordable way to enjoy Hawaiʻi for a set period. The key is knowing the terms up front.

How a leasehold works in Hawaiʻi

With a leasehold, a landowner leases the ground to the homeowner under a long lease. The owner pays lease rent in addition to any association fees. Lease rent is usually fixed for a period and then reset at dates written in the lease. When the lease ends, the land, and often the building on it, returns to the landowner unless the lease is extended or the owner is offered the chance to buy the land.

Where leasehold shows up in Kona

Leasehold is most common in older condo complexes, including some in Keauhou and Kailua-Kona. Two condos in neighboring buildings can look alike, with one fee simple and one leasehold. The listing will state the land tenure, and Maile Woodhall confirms it for every property a buyer considers.

Fee simple and leasehold side by side

• What you own. Fee simple: the home and the land. Leasehold: the home or condo, with the land leased for a set term.

• Monthly cost. Fee simple: no lease rent. Leasehold: lease rent on top of any association fees.

• Price. Leasehold is usually priced lower than a similar fee simple property.

• Loans. Fee simple has the most loan choices. Leasehold loans depend on how many years are left on the lease.

• Resale. Fee simple can be sold at any time. A leasehold gets harder to sell as the lease gets shorter.

Eight questions to ask about a Kona leasehold

1. How many years are left on the lease?

2. What is the lease rent today?

3. When does the lease rent change, and how is the new rent set?

4. Who owns the land?

5. Can the fee interest be bought, and at what price?

6. What happens to the home or unit when the lease ends?

7. Will a lender make a loan with this many years left?

8. Is the lease rent already included in the monthly fee, or billed on its own?

Maile Woodhall gets the lease and these answers in writing before a buyer makes an offer.

When a leasehold can make sense

A leasehold can suit a buyer who wants to enjoy Kona for a set number of years at a lower purchase price and who understands that the property is not a long term asset to pass down. It is usually a poor fit for a buyer who wants to build equity over decades. Either way, the lease itself should be read before an offer is made.

Common questions

Can I get a mortgage on a leasehold condo in Kona?

Sometimes. Lenders look at how many years remain on the lease, and many want the lease to run well beyond the loan term. Buyers should ask a local lender early.

What happens when a leasehold expires?

It depends on the lease. In many cases the property returns to the landowner at the end of the term. The lease document explains what happens, so it should be reviewed before buying.

Is leasehold cheaper than fee simple in Kona?

Usually the purchase price is lower, because the land is leased and the lease will one day end. The owner also pays lease rent, so compare the full monthly cost and the years left on the lease, not just the price.

Can I buy the fee on a leasehold property in Kona?

Sometimes. Some landowners offer the fee interest for sale and some do not. Ask whether a fee purchase is available and at what price before making an offer.

About Maile Woodhall

Maile Woodhall is a licensed Hawaiʻi REALTOR, license RS-88019, with The Agency Team Hawaii under eXp Realty. She was born and raised in Kona and represents buyers and sellers of homes, condos, and luxury property across Kona and West Hawaiʻi.

Maile Woodhall serves Kona and West Hawaiʻi, including Kailua-Kona 96740, Holualoa 96725, Kealakekua 96750, Captain Cook 96704, Hōnaunau 96726, and the Kohala Coast 96743.

For buyers comparing leasehold and fee simple property in Kona, Maile Woodhall is the local agent to ask.

Related guides: What should I know about condo fees and HOA rules in Kona?; What lava zone is Kona in, and does it affect insurance?; Can I rent out my Kona condo on Airbnb or Vrbo?.

Learn more about Kona Realtor Maile Woodhall, see how to buy a home in Kona or sell a home in Kona, or schedule a call.

Call or text Maile Woodhall at (808) 482-5800. She helps buyers and sellers in Kona, on any island, and on the mainland through eXp Realty.

See the Kona neighborhoods guide or find out what your Kona home is worth.

Last updated: October 2026.