Leases: introduction: other definitions relating to leases
- Premium: a premium is a capital sum paid for the grant of a lease. The payment may be made in money or money’s worth.
In Scotland `premium’ includes a grassum payable to any landlord, or intermediate landlord, on the grant of a sub-lease.
- Rack Rent: a rack rent is the maximum rent which can be obtained under a particular lease. It is equivalent to a `full market rent’.
- Lessor: a lessor is a person who grants a lease (otherwise known as a landlord).
- Lessee: a lessee is a person taking a lease (otherwise known as a tenant).