A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration

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Acquiring the use of an asset through a rental agreement. The lessee makes regular payments to the lessor for the right to use the asset. Leasing is often used for vehicles, machinery, and office equipment.

Example:

•   Vehicle Lease: A delivery company leases a fleet of vans for £500 per month each instead of buying them outright.

•   Equipment Lease: A construction firm leases heavy machinery for £1,000 per month.

Real-LifeScenerio

A startup leases an office for £2,000 per month, avoiding the high upfront cost of buying property.

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