1) one (1) year + one (1) year [optional] is the norm currently being practiced in the market and you can depart from the norm and imposes either two (2) or three (3) years on the principal period and with an option of either one (1), two (2) or three (3) but never three (3) simply because any period more than three (3) years continuously amounts to a lease, you don't want to lease your property.

2) you can go to a maximum of hundred (100) years if the parties have not issues but noted my paragraph (1) on the issue of lease and also, limitation period sets in after six (6) years. the only good thing you get out of having long extendable option periods is that you don't need to redraft a new tenancy agreement, all you need to do is have a letter to confirm the exercise of the option and then have it stamped ad valorem.

3) you are right, if you have a two (2) years + two (2) years tenancy agreement, once the entire four (4) years period has lapsed then you need to prepare a fresh tenancy agreement.

An agreement without a time is void for uncertainty, if your agreement states one (1) year + one (1) optional year then it is only valid for two (2) years provided the option was exercised. As far as formality is concerned, there is no third (3rd) years.

You cannot even sue for rental after the two (2) years. It's called a "tenant-holding-over".

Just do a three (3) years + three (3) optional years.

i will not elaborate simply because then it will be a wall of text.

what people need to know is that lease is a registrable interest, meaning to say the lessee is entitled to have their name endorsed on the individual document of title to the property, you don't want other people's name to be endorsed on your property now, do you?

just think of it like a "caveat". you will still remain the registered proprietor of the property, so no worries about that and your rights are not diluted in any way but now, you share the property.

unless, you have no interest in any undertakings to the property otherwise don't create a lease because a lease also give "somewhat-owners" right.