Define: Lease

UK Accounting Glossary

Definition: Lease


Quick Summary of Lease


An agreement by which an owner of real property gives the right of possession to another for a specified period of time and payment.



What is the dictionary definition of Lease?

Dictionary Definition


A contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment.

  • to let for money.

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Full Definition of Lease


A lease is a legal contract that transfers the right of possession to real property, typically in exchange for payment of rent. The party to a lease that takes possession is called the lessee. The party to a lease that grants possession is called the lessee. The lessee and lessor of a lease are often called the tenant and landlord, respectively. Every lease should be in writing. Minimally, the lease must identify the lessor, lessee, the property, the rent, and the interval of possession. In practice, the commercial lease for an important property can stretch to hundreds of pages; the typical residential lease is merely a few pages. Not surprisingly, leasing 250,000 square feet of class A office space for 20 years in a midtown Manhattan high-rise is unlike renting a cottage in Vermont for the summer, yet each agreement is a lease. Using a professional real estate agent to negotiate a commercial lease is thus often extremely advisable; for a residential lease, an agent may sometimes be helpful, but the stakes are much less.


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Examples of Lease in a sentence


The lease on all of these properties is up in May, and the owner will not be renewing them, as he plans on tearing the buildings down to put up a parking garage.
For people who don’t have the money for a down payment, a “lease-to-own” arrangement is a good way to buy property, because their monthly payments go towards the purchase price, but they are not liable for the full amount if they need to get out of the contract.



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/lease/
Modern Language Association (MLA):
Lease. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 28, 2020 https://payrollheaven.com/define/lease/.
Chicago Manual of Style (CMS):
Lease. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/lease/ (accessed: March 28, 2020).
American Psychological Association (APA):
Lease. PayrollHeaven.com. Retrieved March 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/lease/

Definition Sources


Definitions for Lease are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.