What does lease mean?
A lease is a legal agreement that gives someone temporary use of property, equipment, or another asset in return for payment. The word can refer either to the contract itself or to the period covered by it. As a verb, lease means to grant such use to someone, as in a landlord leasing an apartment, or to obtain it, as when a business leases machinery. In everyday use, lease is especially associated with long-term rental arrangements for homes, offices, shops, and industrial premises, although the term is not limited to property. The payment made under a lease is called rent. Legal details vary by jurisdiction, but the central idea remains a time-limited right of use granted through an agreement. A lease can be renewed, transferred, or terminated according to its terms and applicable law.
A contract granting the right to use property, land, equipment, or another asset for a specified period in return for payment.
"The business renewed its lease on the warehouse for another five years."
The word can also refer to the period of possession covered by the agreement, as in 'the lease expires in June.'
To grant the temporary use of property, equipment, or another asset in exchange for payment, or to obtain such use by paying for it.
"The company leases office space near the city center."
In the granting sense, the subject is the owner; in the obtaining sense, the subject is the user.
The plural is leases. It is used for multiple contracts, agreements, or rental arrangements.
"The landlord reviewed all the leases before the property was sold."
A lease turns temporary possession into a written bargain, giving both owner and occupier a clearer relationship than a casual agreement.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does lease come from?
The word entered Middle English in the form lese, derived from Anglo-French les, which came from Latin locare, meaning to place, assign, or grant the use of something. The noun originally developed from an older Germanic word associated with the idea of granting or leaving property for a period. The verb was later formed from the noun. Related English forms include lessee, the person who receives a lease, and lessor, the person who grants one.
Related word forms
How lease is actually used
In British usage, lease is especially common for property, although it can also apply to equipment and vehicles. In US usage, it is standard for both property and equipment, often with legal or administrative connotations. As a verb, it is commonly followed by a direct object.
Easily confused with lease
A lease grants temporary use of property or equipment for payment, whereas a release gives up or frees a claim, right, or restriction.
A lease is the legal agreement or arrangement itself, while rent is the payment made under that arrangement.