Lease “Re-gears” and "Re-Gearing" Explained and Expounded
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- Category: Leases & Titles
You may come across the phase lease “re-gears” or “re-gearing”, particularly with commercial property leases, and wonder what on earth this is describing.
Just what is a lease regear, and what does it mean?
In short, a re-negotiation of the lease so that there’s a benefit for both the landlord and tenant.
Often this means that it extends longer to have a reduced rental level now. Therefore, you tend to define a lease regear by what the two parties want out of the property interest – the landlord, and tenant.
So, one will trade-off one factor of the lease, to benefit another; and the other vice versa, on hopefully a mutually beneficial basis.
It’s not that either party has to do any of this. After all the current lease is a set...
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In terms of what is a lease renewal at a commercial property, then it’s basically agreeing to a whole new lease for a tenant to continue occupying a property for their business.
Heads if terms can be referred to when you’re looking to take a lease at a property, particularly with commercial premises rather than a usual short-term ASTs with residential property. They can also appear when preparing for a freehold or leasehold sale of whatever property interest.
