Equity Release Through Sale and Leaseback

In a sale and leaseback the company who owns the freehold property, sells it to a property investor and simultaneously leases it back. Cash replaces the asset on the company's balance sheet and the company remains in effective control over its assets. Benefits of a sale and leaseback transaction include:

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• Generating cash quickly
• Maintain long term operating control
• Taking the asset off balance sheet
• Flexible working environment
• Transfer property risk to investor

In exchange for the capital payment the new tenant normally signs an institutionally based lease on full repairing and insuring terms at a fair open market rent. The lease terms agreed can be adapted to suit the landlord or tenant however it is the basis of these terms that derive the end value.

In the current climate companies may be looking to effect a sale and leaseback to inject cash into their company to drive business forward in spite of worsening economic conditions. We work with clients on both the sales and acquisition side and aim to create a mutually beneficial deal.

Should you require any further information or have any queries then please do not hesitate to contact us.