After the individual payment schedule is paid in full, the available balance returns to normal. This gives lessees the ability to get more cash after they have paid off the initial equipment payments. Terms do not expire under this type of lease and the terms of the lease remain the same, unless otherwise terminated or when it expires.
Master Lease in in Real Estate
In real estate, a master lease is the right of a tenant to sublease a property to another tenant. In a master lease, the lease is not extended, it is only temporarily transferred from one party to another. The party that subleases the property in a master lease is known as the lessee. A lessee has the right to use the property and transfer it to a sublease up to the period extended in their own lease.
There are two main reasons why a lessee would sublease their property. The first reason is when the ost of renting real estate increases and they can make money on their own lease by leasing it to another property. In other words, this is a way lessees can earn rental income without even owning the property. This might occur when a lessee has a long term lease whereby the lease terms were secured before rental rates went higher. The other reason a lessee may opt to sublease their property is when they have difficulty affording the rental payment.
