Lease term

Lease term

The life of a lease, including any renewal options.

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Lease Term

The interval between the time a lease goes into effect and its expiration. This applies to both open-end leases and close-end leases. For example, one may rent an apartment (usually open-end) with a 12 month lease term, or one may lease a car (generally close-end) with a five year lease term. The lease term may or may not be renewed, depending on the type of lease and the agreement between the parties.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved