General Info

What is the definition of an open end lease?

What is the definition of an open end lease?

An open-end lease is a type of rental agreement that obliges the lessee (the person making periodic lease payments) to make a balloon payment at the end of the lease agreement amounting to the …

What happens to the equipment at the end of a lease?

At the end of the lease, the equipment will revert to the lessor. The equipment has a useful life of 8 years and has no residual value. At the time of the lease agreement, the equipment has a fair value of $166,000. An interest rate of 10.5% and straight-line depreciation are used.

When does a 10 year lease come to an end?

“For a term of 10 years starting on and including 1st May 2005” removes any doubt that the term ends on 30th April 2015 and argument is completely removed by saying “for a term starting on and including 1st May 2005 and ending on and including 30th April 2015”.

When to use a closed end care lease?

A closed-end care lease may make more sense for general consumers who need a vehicle that will make regular trips of predictable length. Since the lessee must purchase the leased asset upon lease expiration, that person bears the risk that the asset depreciates more than was expected by the end of the lease.

When does a lease with a term end?

Here are the components of this question: a lease with a term (ie, a year long lease, a 9 month lease, any defined period of time), where beginning dates and end dates on the lease are written down, AND What’s the deal?

At the end of the lease, the equipment will revert to the lessor. The equipment has a useful life of 8 years and has no residual value. At the time of the lease agreement, the equipment has a fair value of $166,000. An interest rate of 10.5% and straight-line depreciation are used.

How does a landlord end a month to month lease?

A landlord can end a month-to-month arrangement for the above listed reasons, at any time, by issuing a 2 or 4 month eviction notice. A tenant can end a tenancy by providing one month’s notice on a month-to-month lease.

When do you have to give 60 days notice to end lease?

Lapsed Leases: As explained in our recent post on lapsed leases, the notice requirement (i.e., 60 days’ notice required to end lease) does become enforceable once a lease ends and turns into a month-to-month tenancy.

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