Definition - What does Lease Option mean?
A lease option refers to a clause or an agreement in a lease contract under which the lessee is allowed to purchase the leased item either at the maturity of the lease term or any time period specified within the lease terms.
Justipedia explains Lease Option
This agreement allows a person to rent out a home or any other asset and then buy it after the lease period is over. Usually, under this agreement, the lessee can’t sell the asset until and unless the required rental payments are not paid on time.