Chapter BLM15505

Record NumberBLM15505
Published date10 April 2016

TradCo enters into a lease with BankCo to hire an asset (which TradCo itself identified and had arranged for the finance leasing member of the banking group to buy at a cost of £50,000). The asset is estimated to have a useful life of 20 years. The terms of the lease are:

  • rent of £12,400 per annum payable in each year 1-5;
  • rent of £25 per annum payable in each year 6-25;
  • in the event that the lessee wishes to terminate the lease then, net of any amounts outstanding on the financing arrangements, the lessee will receive a rebate of rentals equivalent to 97% of net sale proceeds.
  • ...

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