A reversionary lease is a

lease A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industr ...

that does not commence until some future date. In Australia, legislation restricts such leases. Such a lease would be void if the lease takes effect more than 21 years from the date that of the instrument.Law of Property Act 1925, s 149(3) A reversionary lease is to be distinguished from a lease of a reversion which is when the landlord after granting a lease to lessee 1 and later grants a lease of the same property to lessee 2 for the same or different period. In such cases, lessee 2 will become the new landlord for lessee 1 (lessee 1 pay rents to lessee 2) and lessee 2 has to pay rent to the original landlord.

References

Real property law {{Realestate-stub