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How to Underline Lease

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The video tutorial explains key concepts related to commercial leases, aiming to demystify common jargon and provide foundational knowledge. It covers various lease structures, particularly focusing on the triple net lease, which is prevalent in commercial real estate. In a triple net lease, tenants pay base rent along with property taxes, building insurance, and common area maintenance costs. This structure places all property-related expenses on the tenant while the landlord retains the property ownership. By the end of the video, viewers will have enough understanding of commercial leases to navigate discussions confidently, even if they don't master every detail.

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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Is underlease same as sublease?

Rather, in a lease, the words sublet/sublease and underlet/underlease are used interchangeably.

Is an Underlease the same as a lease?

An underlease is a lease that is not granted by a freehold owner but by a person who is, himself, a tenant. So it is a lease which is granted out of another lease.

What is the difference between head lease and sub lease?

A sub-lease occurs when a tenant under a lease grants a lease of its interest to another party. The lease granted by the tenant in this way is known as a sub-lease (also called an underlease) and the original lease is then known as a head lease.

What is an Underlease?

A lease that is not held directly from the freeholder, but from a tenant. The most common way for an underlease to arise is for a tenant to create one out of an existing lease. The tenant of the existing lease would be the landlord of the underlease created from it.

What does having a Underlease mean?

An underlease is a lease that is not granted by a freehold owner but by a person who is, himself, a tenant. So it is a lease which is granted out of another lease.

What happens to Underlease on surrender of lease?

A surrender by deed does not automatically terminate the sublease, instead the subtenant becomes the direct tenant of the landlord in ance with section 139 (effect of extinguishment of reversion) of the Law of Property Act 1925.

What is the difference between a head lease and an Underlease?

A headlease is a lease granted out of the freehold and an underlease is one granted out of a headlease. There may be any number of underleases (sometimes described as sub-underleases, sub-sub-underleases and so on), but each underlease must expire before the one out of which it is granted.

What is the difference between underletting and subletting?

Various dictionaries suggest that as a verb, underlet means to let a property for a sum below the value of the demise, whereas a sublet is simply a lease or all or part of a property.

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Underline Lease