lease

LEES /liːs/
nounverbB2IELTSTOEFLGMAT
businesslegaleveryday

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

Unlike a short-term rental, a lease implies a long-term, legally binding commitment (often spanning months or years) with strict terms regarding maintenance and return conditions.

The story behind the word. The word 'lease' traces back to the Latin 'laxare', meaning 'to loosen'. When you lease something, the owner 'loosens' their grip on their property, letting someone else hold and use it for a designated period in exchange for money.

Word relationships

  • rental agreement: A rental agreement is typically short-term (day-to-day or month-to-month), whereas a lease is long-term and harder to break.
  • charter: Charter is specifically used for renting vehicles like boats, aircraft, or buses for private group use.
  • purchase: Purchasing transfers full ownership of the asset immediately, whereas leasing only transfers temporary usage rights.

Commonly confused with

  • rent: Renting is short-term and flexible; leasing is long-term, structured, and legally binding over a set period.

Word family

  • leasing (noun): The act of granting or obtaining the use of something under a lease.
  • leased (adjective): Held or used under a lease agreement.

Collocations

  • sign a lease
  • lease agreement
  • terminate a lease
  • long-term lease

Idioms & expressions

  • a new lease on life

Example sentences

  • "The company decided to lease a fleet of electric delivery vans rather than purchasing them outright to preserve capital." A business decision regarding company vehicles.
  • "Under the terms of the lease, the tenant was responsible for all minor repairs and routine maintenance." A legal dispute over contract terms.

Memory hook

Think of 'leasing' as 'letting' someone else 'ease' into ownership without actually buying the car. Lease = Let it go for a fee.

When not to use

Do not use 'lease' when you are borrowing a car for a weekend vacation; that is simply a 'rental'.

Fun facts

  • The idiom 'a new lease on life' originally referred to renewing a property lease, which allowed a tenant to continue living and working on the land for another term.

Related words

lessee, lessor

Explore more words

lend, Contract, Agreement, covenant, charter, tenure

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