What is meant by 'alienation' in leasehold terms?

In leasehold terms, 'alienation' refers specifically to the transfer of a leaseholder's interest in the property to another party. This concept is central to lease agreements, as it involves the legal ability of the tenant to assign or sublet their lease to someone else. Alienation can occur through various means, such as subletting the leased premises or assigning the lease to another tenant.

Understanding this concept is crucial for both landlords and tenants. It affects the rights and responsibilities of the parties involved, particularly concerning approval rights on lease transfers and the obligations that remain with the original leaseholder after the transfer. For example, if a leaseholder successfully alienates their lease, they may still be liable for certain lease obligations unless formally released, affecting their financial and legal responsibilities.

The other options do not capture the essence of 'alienation' in leasehold terms. Lease renewal, termination, and modification of lease terms are distinct legal processes that do not involve the transfer of interest but rather the changing nature of the existing leaseholder's arrangement. Therefore, the correct choice highlights the specific action of transferring interest, distinguishing it from other lease-related concepts.