A provision allowing the lessee, at its option, to extend the lease for rental payments that are so much less than fair value that the lessee is reasonably sure to exercise it.
a contractual or lease provision allowing the lessee to renew the lease for a rental fee that is lower than the expected fair rental fee at the date the option becomes exercisable
A provision in the lease language which allows the lessee, at its option, to renew the lease for a rental that is sufficiently below fair market value such that it is a reasonable certainty at the inception of the lease that the lessee will choose to extend the lease.
A lease provision allowing the lessee to extend the lease for an additional term with payments substantially lower than the fair value of the asset, such that exercise of the option appears, at the inception of the lease, to be reasonably assured.
A lease provision allowing the lessee, at this option, to renew the equipment lease for a rental rate predetermined at lease inception, that is substantially lower than the expected fair market value at the date the option can be exercised. Broker: A broker acts as the middle-man between the lessee (the user of the equipment) and the full service leasing company that ultimately provides the credit approval, documentation, funding, and billing. There are many leasing companies that act as brokers and receive a fee for their work. There are fewer full service leasing companies that have the ability to hold and service their leases throughout the entire term of the lease. The full service lessor provides greater control for the lessee and/or vendor in the event the lessee wants to upgrade or early terminate their lease. Since there is no middleman, doing business directly with a full service lessor usually results in a lower lease rate for the lessee and a higher sale price for the vendor.
A lease provision allowing the lessee, at its option, to extend the lease for an additional term in exchange for periodic rental payments sufficiently less than fair value rentals for the property, such that exercise of the option appears, at the inception of the lease, to be reasonably assured.
An option that allows the holder to renew/extend a contract at less than the fair market value in exchange for periodic payments.
A lease provision allowing the lessee, at this option, to renew the equipment lease for a rental rate predetermined at lease inception, that is substantially lower than the expected fair market value at the date the option can be exercised. Due to its nature, it is typically a near certainty that the option will be exercised since the consideration to be given for the purchase is so marginal/nominal as to be deemed nearly insignificant.
