Sep 25 2021

Lease Term Extension Agreement

Published by at 6:01 pm under Uncategorized

Contact the other party and ask if they intend to renew the lease under current or new conditions. This can be done by phone or email. Some house managers send a letter by mail asking the tenant if they wish to stay on the land for an extended period of time, with contact details if they wish. There are several reasons why the lessor and lessee want a lease. For the tenant, this can mean avoiding an expensive and difficult move to a new property. The extension of the current lease saves them from having to search and find a new space and then having to venture with a move. Companies enter into leasing contracts and enter into leasing renewal contracts for a variety of reasons. The main reason for leasing an asset instead of buying is risk management. A company may decide to lease land to protect it from the risk of fluctuating land prices.

This allows the company to focus on its core competencies and not on real estate. Hire-purchase agreements can also be granted by car dealers. Suppose a consumer rents a car for four years. At the end of this period, the tenant may decide to buy a brand new car or to start another rental contract. The dealer may grant an extension of the original lease agreement if the new replacement vehicle is not yet available. A lease is a legal lease between a landlord and a tenant. This allows both parties to continue to enjoy the benefits of a great lease and a great relationship.

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