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Lease Extension

What is 'Lease Extension'

A legal agreement that extends the term of a rental agreement. The lease extension document should name the parties to the agreement, provide the dates on which the extension begins and ends, and reference the earlier agreement that is being extended. Lease payments do not have to remain the same under a lease extension.

Explaining 'Lease Extension'

A lease extension could be executed between a landlord and a tenant, when the tenant's lease is about to expire and he or she wants to continue renting the property. Another situation where a lease extension might be desirable is if a consumer is leasing a vehicle from an auto dealership and opts to lease or purchase a different vehicle at the end of the lease term, but wants to temporarily continue using the original leased vehicle because the replacement vehicle is not yet available.


Further Reading


Valuation of asset leasing contracts
www.sciencedirect.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Financial reporting quality, private information, monitoring, and the lease-versus-buy decisionFinancial reporting quality, private information, monitoring, and the lease-versus-buy decision
meridian.allenpress.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Evaluating leases with complex operating optionsEvaluating leases with complex operating options
www.sciencedirect.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Long‐term ground leases, the redevelopment option and contract incentivesLong‐term ground leases, the redevelopment option and contract incentives
onlinelibrary.wiley.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

A perspective on the joint IASB/FASB exposure draft on accounting for leases: American Accounting Association's Financial Accounting Standards Committee (AAA …A perspective on the joint IASB/FASB exposure draft on accounting for leases: American Accounting Association's Financial Accounting Standards Committee (AAA …
meridian.allenpress.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Option valuation of claims on real assets: The case of offshore petroleum leasesOption valuation of claims on real assets: The case of offshore petroleum leases
academic.oup.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Valuing long-term leases: The option to redevelopValuing long-term leases: The option to redevelop
link.springer.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

To lease or not to lease from storage cloudsTo lease or not to lease from storage clouds
ieeexplore.ieee.org [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

The financial engineering of infrastructure privatization: What are public assets worth to private investors?The financial engineering of infrastructure privatization: What are public assets worth to private investors?
www.tandfonline.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …

Valuing lease contracts a real-options approachValuing lease contracts a real-options approach
www.sciencedirect.com [PDF]
… the contractually specified lease payments, L, for U and compute the net advantage to leasing as … As discussed in section 2.2, some operating leases grant the lessee the right to extend the … payment lease extending from T- 1 to T that includes an option to purchase the asset at …


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