A bargain renewal option in a lease agreement gives the lessee the right to extend the lease term at a rate favorable enough that's considerably below market value.
A Capital Lease, in the USA, is a lease that does not legally constitute a purchase but is recorded as an asset on the lessee's books under certain conditions.
An element of rent that varies based on certain conditions, such as sales, usage, interest rates, or inflation indexes, rather than being fixed at the inception of the lease.
A financial lease is a leasing arrangement where the lessor's role is mainly limited to financing the property, while the lessee takes on the responsibilities of maintenance, insurance, and taxes, resembling a loan in its structure.
A lease is a contractual agreement in which a lessor grants the lessee the right to use an asset for a specified period in return for specific rental payments. While the lessor retains ownership rights, the lessee gains usage rights.
A lease bonus is an amount paid to a lessor to induce them to execute a mineral lease, entitling the lessee to explore, develop, and produce minerals from the leased area.
The lessee is an individual or entity that rents or leases an asset or property from another party (the lessor) for a stipulated period and at an agreed price.
A leveraged lease is a lease agreement that involves a third-party lender in addition to the lessor and lessee. This structure is commonly used in financing large capital assets.
A long-term lease generally refers to a commercial lease of five years or longer, or a residential lease longer than one year. It involves a contractual agreement between a landlord and tenant for the use of a property for a prolonged period.
An agreement granting the lessee the right to extract and sell minerals from the lessor's property in exchange for royalty payments based on the value of the extracted materials.
An open-end lease is a leasing agreement that includes a provision for an additional payment after the leased property is returned to the lessor, to account for any fluctuations in the property's value.
An operating lease is a lease agreement that is not a finance lease, in which the lessor retains significant risks and rewards of ownership.
A reappraisal lease is a type of lease agreement where the rental level is periodically reviewed by independent appraisers to ensure the lease payments reflect the current market value.
A sandwich lease is a lease held by a lessee who becomes a lessor by subletting the leased property. Typically, the sandwich leaseholder is neither the owner nor the end-user of the property.
A True Lease is a leasing arrangement in which the lessor retains the risks and rewards of ownership, distinguishing it from other lease types like Financial Lease and Synthetic Lease.
