Reversionary Lease
Definition of "Reversionary lease"
The reversionary lease definition is a lease that only starts at a later date. It is not a lease that starts only when another current lease ends. That is a lease of reversion. Not to be confused.
It is often used when the occupancy of a property is postponed for a future date. It can easily be used if, for example, a renter of a particular space runs a business there. The business is profitable and the owner of the space is happy because he has a stable tenant. In this case, a reversionary lease can be drafted to start at the end of the current lease. The lease is done between the same entities just for a different timeline.
A reversionary lease in real estate will also avoid the troubles that an extension of the current lease might bring. An extension on a current lease brings with it taxes, having to register the land as well as other results.
With a reversionary lease in place, if the lease ends at an inconvenient time and both parties want to continue the contract, the change will go by smoothly and both parties are free to go about their own business interests.
Popular Real Estate Terms
Privilege of a real estate investor or lender to participate in the profitability generated from property. This is in addition to any principal, interest, or dividends. ...
Street having access only at one end and terminating with a circular turnaround area. The circular area permits automobiles to exit the street without having to use a home's driveway to ...
Everyone knows what is a retirement home, but if we were to give our best most concise retirement home definition it would be of something like: real estate facilities that cater to retired ...
Also know as Fannie Mae, the FNMA accept bids from approved lenders as to the amount, price and terms wish to sell Fannie Mae. Upon deciding how much money it will spend during a given time ...
See common law. ...
Lack of supply of real property. When demand exceeds supply, price of the property goes up. For example, if there are only a few homes in a town that everyone desires to reside in, the ...
Implied assurance from a landlord to a prospective tenant that an apartment is safe and void of health problems. ...
Government compensation to farmers not to grow products to preserve the land and maintain stable agricultural products. ...
Loss arising from the partial or complete destruction of property resulting from circumstances of a sudden, unanticipated or unusual nature. For example, fires, storms and floods to real ...
Have a question or comment?
We're here to help.