A finance lease is a type of a commercial lease arrangement between two or more parties in which the involved parties enter an arrangement referred to as a finance lease deal. Under such a deal the lessee i.e. the party taking the lease, selects a certain asset or property they wish to use and the lessor, i.e. the party issuing the lease, buys the respective commodity of lessee’s interest and leases it to him/ her. The lessee in return of the use of the commodity makes lease payments to the lessor. The ownership of the commodity lies with the lessor for the period of the lease.
Sample Finance Lease Deal
Date of framing the lease deal document: 15th January 2010
The respective finance lease deal is being made by and between Mr. John Gibbons, the lessor and Mr. Jamie Luther, the lessee, as on the 15th of January 2010.
The lease deal states that the lessee i.e. Mr. Luther has leased a commercial property from the lessor i.e. Mr. Gibbons for a period of 17 months starting on the 16th of January 2010. The details of the deal made and the details of the respective property are given below.
Details of Lessor:
Name: Mr. John Gibbons
Contact No.: 502-436-582
Details of the Lessee:
Name: Mr. Jamie Luther
Contact No.: 346-756-457
Details of the Property:
Type/ Use: Commercial
Location: 56, Peterson Complex, St. James Carmon Street, Pittsburg, USA.
Terms of the Deal:
- The lessee must make the decided monthly rent payments no later than the 5th of every month.
- In case of any delay in the rent payments the lessor may take legal action.
- The lessee has the option of buying the property on expiry of lease by negotiating with the lessor.
Mr. John Gibbons: ______________________
Mr. Jamie Luther: ______________________