- An option that allows a leasee to continue an existing lease. Lease extensions typically continue from month to month at the original monthly payment amount.
Related Terms and Acronyms
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Lease Option — Definition,
- A written agreement in which an owner allows an individual to use a property in exchange for rent, and also gives that individual the right to buy the property for a specified price within a specified period
- Option — Definition,
- A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
- Step Down Lease — Definition,
- A lease providing for decreases in rental payment at specified dates.
- Step Up Lease — Definition,
- A lease providing for increases in rental payment at specified dates.