Legal Definitions - redemise

Redemise refers to the act of transferring back an estate or property interest that was previously transferred or leased. Essentially, it's the return of a property interest to the person who originally transferred it, often in the context of a lease.

Here are a few examples to illustrate this concept:

• Example 1: Sublease Termination

  Imagine a large corporation, Tech Innovations Inc., leases an entire office building from a property owner for ten years. A few years into their lease, Tech Innovations Inc. decides to sublease one of the floors to a startup company, Bright Ideas LLC, for three years. If, after two years, Bright Ideas LLC decides to vacate and formally transfers its sublease interest back to Tech Innovations Inc., this act of transferring the sublease interest back is a redemise. Tech Innovations Inc. originally demised (subleased) the floor to Bright Ideas LLC, and now Bright Ideas LLC is redemising it (transferring it back).

• Example 2: Leasehold Mortgage Release

  Consider a small business owner, Ms. Chen, who leases a commercial unit for her bakery. To secure a loan for new equipment, Ms. Chen temporarily "demises" (transfers an interest in) her leasehold rights to the bank as collateral. This means the bank holds a security interest in her lease. Once Ms. Chen fully repays the loan, the bank will then "redemise" (transfer back) the leasehold interest to her, releasing their claim. The bank is returning the property interest that was previously transferred to them as security.

• Example 3: Landlord Leasing Back a Portion

  A property developer, Grand Estates LLC, leases a large parcel of land to a farming cooperative, Green Acres Co-op, for agricultural use. Later, Grand Estates LLC decides they want to build a small, temporary sales office on a corner of that land to market future residential plots. They negotiate with Green Acres Co-op, and the cooperative agrees to lease that small corner plot *back* to Grand Estates LLC for a specific period. This act of Green Acres Co-op leasing a portion of the land back to the original lessor, Grand Estates LLC, is a redemise.