Posted by JohnBoy on August 17, 2004 at 21:43:55:
If it’s at a 30 year term, absolutely! You never do more than a 3 year term and preferrably a one to two year. If need be you can always renew for another term later. That way you avoid having a lease option reclassified as a sale. This is of course if you are the seller selling on a L/O.
If you are the buyer then it wouldn’t matter as much. But I wouldn’t want to commit to a 30 year L/O as a buyer either. I would make the contract one year terms with the right to renew for another x number of one year terms. That way if you ever needed to get out of the contract you would only be liable for the remainder of the one year term and you can walk away if need be. Otherwise just exercise your right to another one year term each year as need be.