The formula to calculate the lease extension cost is:
\[ C = (R \times M) + F \]
Where:
A lease extension is an agreement between a landlord and a tenant to extend the term of an existing lease. This extension can be for a specified period and may involve additional costs, such as increased rent or additional fees. Lease extensions are common in both residential and commercial real estate and provide tenants with the flexibility to remain in their current location without the need to negotiate a new lease agreement. The terms of the extension, including the duration and any associated costs, are typically outlined in an addendum to the original lease agreement.
Let's assume the following values:
Using the formula:
\[ C = (1000 \times 6) + 200 = 6200 \]
The Lease Extension Cost (C) is $6200.
