A Lease With Option To Purchase is commonly used when a potential buyer wishes to occupy a property immediately but needs time before completing a purchase, perhaps to arrange financing or assess the property's suitability. This document, governed by English and Welsh law, combines standard lease provisions with detailed terms for a future purchase option. It provides security for the landlord through regular rental income while giving the tenant exclusive rights to purchase the property under pre-agreed terms. The agreement is particularly useful in commercial property transactions and rent-to-own residential arrangements.
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1. Parties: Identification and details of the landlord and tenant
2. Background: Context of the agreement and property details
3. Definitions: Key terms used throughout the agreement
4. Demise: Description of the property being leased
5. Term: Duration of the lease
6. Rent: Payment terms and review provisions
7. Option to Purchase: Terms and conditions of the purchase option
8. Tenant Covenants: Tenant obligations during the lease term
9. Landlord Covenants: Landlord obligations during the lease term
1. Break Clause: Early termination provisions - used when parties want flexibility to end the lease early
2. Service Charge: Additional charges for building services - used for leases in multi-occupied buildings
3. Insurance: Insurance obligations and requirements - used when specific insurance arrangements are needed
1. Schedule 1: Property Plan: Detailed plan of the leased property
2. Schedule 2: Property Inventory: List of fixtures, fittings, and contents
3. Schedule 3: Purchase Price Calculation: Formula or method for determining the purchase price
4. Schedule 4: Condition Report: Initial condition of the property
Relevant legal definitions
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