Which leasehold estate allows either party to terminate the lease with notice?

The leasehold estate that allows either party to terminate the lease with notice is the estates at will. This type of estate does not have a fixed duration, making it more flexible compared to other leasehold types. Typically, either the landlord or the tenant can end the agreement at any time, provided they give reasonable notice. This flexibility makes estates at will particularly useful in situations where long-term commitments are not practical or necessary.

In contrast, an estate for years has a definitive beginning and ending date, and does not allow for termination without mutual consent prior to the end of the lease term. Similarly, a periodic estate involves lease periods that repeat (such as month-to-month), but generally requires specific notice periods for termination, which is not as immediate as in an estate at will. Finally, a tenancy at sufferance occurs when a tenant remains in possession after the lease has expired and lacks the agreement of the landlord to continue, which does not provide either party the option to terminate as it is not a true leasehold estate. Therefore, the correct choice clearly demonstrates the flexibility and mutual termination rights characteristic of the estate at will.