What is the purpose of a 'lease extension'?

A lease extension primarily serves to increase the length of the existing lease term. When a tenant and landlord agree to extend a lease, they are essentially allowing the tenant to continue occupying the property for an additional period beyond the original lease duration. This is often beneficial for tenants who wish to remain in the property without the interruption of moving to a new location, and for landlords who want to maintain stability and avoid the costs and uncertainty that come with finding new tenants.

In the context of lease agreements, extending the lease can provide security for both parties. The tenant gains assurance that they can reside in the property for an extended timeframe, while the landlord can secure ongoing rental income without the need to search for new tenants.

The other options do not accurately reflect the main purpose of a lease extension. Reducing rental payments or modifying lease responsibilities would typically involve renegotiation of terms rather than simply extending the lease duration. Transferring ownership of the property implies a sale or transfer of title, which is distinctly different from the concept of extending a lease agreement.