Which of the following is NOT a feature of a long-term lease?

A long-term lease is characterized by several distinct features that set it apart from shorter lease arrangements. In this context, the focus is on what defines a long-term lease.

The option to buy is a common feature in many long-term leases, especially in real estate or significant asset leases. It provides the lessee with the opportunity to purchase the asset at the end of the lease term. This feature allows for a smoother transition and long-term planning for the lessee.

Lease reviews and asset upgrades are also typical features of long-term leases. Since the duration is extended, there often needs to be periodic evaluations of the lease terms to ensure they remain fair and reflective of the market values. This could also include discussions about asset upgrades, as the lessee may want to improve the condition or value of the asset over time.

Lease payment obligations are fundamental to any lease agreement, particularly in long-term leases. These obligations are crucial for budgeting and financial planning, ensuring that both parties understand the financial commitments involved.

Contrarily, a short duration is not a feature of a long-term lease. Long-term leases typically span several years, often exceeding five years and sometimes lasting decades, making the notion of a short duration inconsistent with the definition of a long-term lease.