 | leasing
The Website Leasing Leasing
is a process by which a firm can obtain the use of a certain fixed assets for
which it must pay a series of contractual, periodic, tax deductable payments.
The lessee is the receiver of the services or the assets under the lease contract
and the lessor is the owner of the assets. The relationship between the tenant
and the landlord is called a tenancy, and can be for a fixed or an indefinite
period of time (called the term of the lease). The consideration for the lease
is called rent. Under normal circumstances, an owner of property is at liberty
to do what they want with their property, including destroy it or hand over possession
of the property to a tenant. However, if the owner has surrendered possession
to another (ie the tenant) then any interference with the quiet enjoyment of the
property by the tenant in lawful possession is unlawful. Similar principles apply
to real property as well as to personal property, though the terminology would
be different. Similar principles apply to sub-leasing, that is the leasing by
a tenant in possession to a sub-tenant. The right to sub-lease can be expressly
prohibited by the main lease.
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The term of the lease may be fixed,
periodic or of indefinite duration.
If it is for a specified period of time,
the term ends automatically when the period expires, and no notice needs to be
given, in the absence of legal requirements.
The term's duration may be
conditional, in which case it lasts until some specified event occurs, such as
the death of a specified individual.
A periodic tenancy is one which is
renewed automatically, usually on a monthly or weekly basis.
A tenancy at
will lasts only as long as the parties wish it to, and be terminated without penalty
by either party.
It is common for a lease to be extended on a "holding
over" basis, which normally converts the tenancy to a periodic tenancy on
a month by month basis.
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