Lease To Own

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Dictionary Says

Definition of 'Lease To Own'

An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time. More often than not, a portion of the total rental payment goes toward paying down the value of the item leased in the event that the renter wishes to exercise the option.
Investopedia Says

Investopedia explains 'Lease To Own'

For housing properties, the cost involved in lease-to-own agreements tend to be more expensive compared to standard rental agreements. In addition to paying rent, lease-to-own contract users need to pay an option fee, similar to an amount paid to buy a traditional stock option, and usually, a rent premium as well, which is not returned to the renter in the event that he or she does not exercise the option to buy the leased item.

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Search results for

'Lease To Own'

  • Rent-To-Own Real Estate Full Of Pitfalls

    http://www.investopedia.com/articles/mortgages-real-estate/08/rent-to-own.asp
    ... Find out in To Rent or Buy? The Financial Issues.) How You Can Rent to Own In a
    lease option, you rent a property at a cost slightly above market rate. ...

  • Rent To Own; Own To Rent

    http://www.investopedia.com/articles/mortgages-real-estate/09/real-estate-purchase-options.asp
    ... (For more details on potential lease option pitfalls, see Get Your Foot In The Door
    With Rent-To-Own.) Summary Sellers using these options should understand ...

  • 4 Alternatives To A Traditional Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/10/mortgage-alternatives.asp
    ... 4. Rent To Own/Lease Option A rent-to-own arrangement, also called a lease option,
    lease to own or lease to buy, allows a homebuyer to rent a property for a ...

  • 3 Reasons To Own National Retail Properties

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-National-Retail-Properties-NNN-O-EXL-RY-KO1020.aspx
    ... on cost (YOC); a financial metric that on its own is meaningless ... Net Lease Investments
    National Retail Properties invests in single-tenant retail properties ...

  • New Wheels: Lease Or Buy?

    http://www.investopedia.com/articles/pf/05/042105.asp
    ... leasing is probably not right for you. As long as you lease, you will never
    really own it. However, depending on your type of lease ...

  • Working With Islamic Finance

    http://www.investopedia.com/articles/07/islamic_investing.asp
    ... b. Lease-to-Own: This arrangement is similar to the declining balance one described
    above, except that the financial institution puts up most, if not all, of ...

  • 6 Ways Businesses Take Advantage Of Real Estate - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/6-Ways-Businesses-Take-Advantage-Of-Real-Estate.aspx
    ... 2. Lease Vs. Own Depressed market conditions can create an environment in which
    some businesses that typically lease properties would wish to take advantage of ...

  • Should You Buy Property On Leased Land?

    http://www.investopedia.com/articles/mortgages-real-estate/08/leased-land.asp
    ... What are the terms of the surrender clause? Check the terms of the surrender
    clause if the lease will run out while you still own the house. ...

  • 11 Mistakes Inexperienced Landlords Make - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/11-Mistakes-Inexperienced-Landlords-Make.aspx
    ... For your own legal protection it's essential that your tenants sign a lease agreement
    to reside in the property and ensure that he or she understands the terms ...

  • How A Bad Roommate Can Ruin Your Credit Score

    http://www.investopedia.com/articles/younginvestors/09/how-roommates-ruin-your-credit.asp
    ... another city, look into what the charge would be to break the lease so that your
    roommate can start a new lease in your apartment or another one on their own. ...

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