Ground Lease Form

Can the contractual term of a commercial lease be extended? Yes. Subject to satisfying certain criteria, business tenants have a statutory right under the Landlord and Tenant Act 1954 to extend the contractual term of their lease. At the end of the lease, the tenant can ask the landlord for a new lease.

A ground lease is a long-term agreement between a landlord and a tenant in which the tenant is allowed to develop the leased property. At the end of the lease term, the landlord retains ownership of the improvements made by the tenant.

A renewal option allows for a lease to apply to a specified time period, but the lease can be extended for another term if agreed upon by the participating parties. Renewal options may have specifications or conditions, such as when the lessee must let the landlord know if they will be renewing.

Many leases provide the tenant with an option to renew or extend the lease term beyond the expiration of the initial term.By definition, a lease renewal is a new lease agreement, whereas a lease extension is a continuation of the original lease agreement.

The freeholder owns the land the property is built on, which means you, as a leaseholder, have to pay 'ground rent'.Once the lease expires, the property reverts 'back' to being a freehold property, where both the building and the land it is on are under the ownership of the freeholder.

Yes, a lease can automatically renew in California. If neither the tenant or the landlord give notice that they want to terminate the tenancy when the lease expires, the lease can be renewed.

As already mentioned, business tenants will generally have the right to continue their tenancy agreement when it expires, but under certain extreme cases landlords do have the power to refuse to renew a lease.

Contract extension: an existing contract is continued for a period of time.Contract renewal: an existing contract endsby, for example, expiringand the parties agree to enter into a new contract (usually for the same or very similar services).

Commercial tenants usually remain in a property when a lease has expired because they are still negotiating the terms of a new, renewed lease with the landlord or they have an informal agreement to stay on.