Definition of Leased fee estate. A lease contract to possess a parcel or property for a certain period of time. A leased fee estate is a conditional estate conveyance in real property for a specified period of time.The lease permits the lessee to possess, use and enjoy the property for the specified period.For example, John agrees to lease a home at the rate of $1,200 per month for two years as a leased fee estate.he lease permits the lessee to possess, use and enjoy the property for the specified period. For example, John agrees to lease a home at the rate of $1,200 per month for two years as a leased fee estate.