Simple English definitions for legal terms
Read a random definition: reinvestment
An underlease is when a person who is renting a property leases it to someone else for a shorter period of time than their own lease. The original renter still owns the lease and will get the property back when the underlease ends. The person who is subleasing the property is called a sublessee or subtenant, and the original renter is called a sublessor or underlessor.
An underlease is a type of lease agreement where a lessee (the original tenant) leases some or all of the leased property to a third party for a shorter term than their own lease. The lessee retains a reversion in the lease, meaning they still have some rights to the property. This is also known as a sublease.
These examples illustrate how a lessee can lease some or all of their leased property to a third party for a shorter term. The original lessee still has some rights to the property, but the sublessee also has certain rights as outlined in the sublease agreement.