Difference between Lease and Mortgage

What is the difference between Lease and Mortgage?

Lease as a verb is to operate or live in some property or land through purchasing a long-term contract (or leasehold) from the owner (or freeholder). while Mortgage as a verb is as in "to mortgage a property", to borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land.

Lease

Part of speech: verb

Definition: To operate or live in some property or land through purchasing a long-term contract (or leasehold) from the owner (or freeholder). To gather what harvesters have left behind; to glean.

Part of speech: noun

Definition: A contract granting use or occupation of property during a specified period in exchange for a specified rent The period of such a contract A leasehold

Mortgage

Part of speech: noun

Definition: A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

Part of speech: verb

Definition: As in "to mortgage a property", to borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land.

We hope you now know whether to use Lease or Mortgage in your sentence.

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