Graduated Lease Law and Legal Definition
Graduated lease is a long term lease on a property that is periodically adjusted to reflect the appraised value of the asset being leased. This type of lease is used in real estate. For example, if under a graduated lease a company was leasing land for 15 years, every five years the lease payments may be adjusted to reflect the current market value of the land. It is also known as a step payment lease.
