Operate Header Lease For Free

A headlease is the primary lease that is signed between a tenant and a property manager. The tenant, or head lessee, is contractually responsible for the terms of the lease, and in most lease agreements, they have the ability to sublease the space if they so wish.

Underlying Lease with respect to any Mortgaged Leased Property, the lease agreement under which an interest in such leased property is held, as the same may be amended, supplemented, waived or otherwise modified from time to time.

A superior lease, also known as a 'Head Lease' is the lease held by a landlord when they are not the owner of the property but also leasing the property from someone else. The Superior Lease sets out conditions that the landlord has agreed with the Superior Landlord.

lease will commonly be a long lease for the whole of the property, carrying the burden of such things as repairing and insuring the building. Alternatively, in a mixed use building, either or both of the residential and commercial areas may be demised under a headlease.

This is usually a superior lease over a building. Out of this headlease subleases are granted. The common scenario is a headlease over a building containing flats which in turn grants subleases to individual flats in a building.

So it's important for current and future real estate agents to understand the different types of leases used in the industry. There are four different types of lease: gross lease, net lease, percentage lease, and variable lease.

A headlease is a lease granted out of the freehold and an underlease is one granted out of a headlease. There may be any number of underleases (sometimes described as sub-underleases, sub-sub-underleases and so on), but each underlease must expire before the one out of which it is granted.