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Once the option is included in the lease, then provided the tenant complies with its obligations under the lease, the landlord cannot refuse to renew the lease for the option term. It is important you understand the steps you need to take if you want to exercise the option to renew your lease.

Note: Difference between option to renew and extend ? where the parties agree to ?extend? the existing lease is continued, where the parties ?renew? this creates a new lease.

For example, a tenant and landlord may agree to a five-year lease with a five-year option to renew. At the end of the first five years, the tenant is given the chance to continue the lease for another five years. If you think you may renew, be sure to bring up extension provisions with your landlord.

Assignments of Business Leases It is open to a landlord to request a guarantor or a rent deposit if the incoming tenant is of poor covenant strength. Once the landlord's consent has been obtained, the tenant and assignee can enter into a deed of assignment to transfer the lease to the assignee.

The technique of leasing provides a facility to use or possess the asset without transfer of title. Basically, It is a contract between two parties Lessor and Lessee, where the lessor is the one who purchases the goods or equipment while lessee is an individual who possesses that goods or equipment.

Duration of lease: The interest which is created in the property could be for a specified period or even in perpetuity. The parties to the lease are free to decide the duration of the lease i.e., the duration can be relaxed at the option of the parties.

As per the requirements of the Registration Act 1908, registration of a property, on lease for a year is obligatory. Therefore, to skip the tedious process of registration, the rent agreements are usually drafted for a period of eleven months.

The lessee enters an equipment leasing agreement with the option to purchase at the end of the contract. The lessor applies a percentage of each payment to the equipment's purchase price. At the end of the contract, the lessor pays the remaining balance to gain ownership of the equipment.