The lease hire is a process through which one can lease property. While a lease refers widely to both moveable and immovable property, a lease hire involves not only the option to lease but also to buy the property. The user is not obligated to buy the property under lease hire but still there is an option provided for the user to pay in installments while leasing the property. This is usually done when the cost of the property cannot be afforded all at once and hence, a certain percentage is set which the user can pay over a great period of time.
The lease hire is not a mortgage payment as the legal owner of the property and can leave the premise after the intended period of time. It is only when the user seeks to buy the property does he pay an extra amount along with the lease rent. The document must be created with careful consideration to the following details:
- The name of the lessor and lessee, and the specification of the property that is in question have to be specified at the beginning.
- The terms and conditions for leasing and hiring are needed to be mentioned clearly. In case the lessee (user) chooses the option of buying, he will be required to follow all the necessary clauses.
- The rent details must be stated. This will include the mode of payment and also the percentage that needs to be paid in case the user also hires the property.
- The legal rights of the user must be properly stated in the document. These are different from the leasing rights.
- In case of breach of contract or failure to make the proper payments, the legal consequences should be mentioned and the leaser’s right to pursue them as well.
- A separate section for the terms must be organized in a coherent manner so as to avoid any confusion.