An arrangement where the owner of property or assets sells and then leases back from the new owner, thus releasing capital value in exchange for the leasing overhead.
A technique used by owners of property as a means of raising capital. The process involves the simultaneous selling and leasing back of the property, usually through a net lease. The advantages to the seller include the freeing of capital previously tied up in the project and the inclusion of the rental payment as a legitimate operating expense for income tax purposes. For the investor, the rental payment represents a return on investment and any depreciation for tax purposes or increases in value due to market conditions accrue to the investor.
A transaction in which a grantee in a deed leases the same property back to the grantor without a change in its possession.
Form of lease arrangement in which a company sells an asset to another company - usually an insurance or finance company, a leasing company, a limited partnership, or an institutional investor - in exchange for cash, then contracts to lease the asset for a specified term.
Situation in which the owner of a parcel of property sells it to a third party and retains possession by simultaneously leasing it from the buyer.
An arrangement whereby a firm sells land, buildings, or equipment and simultaneously leases the property back for a specified period under specific terms.
An arrangement where the lessor acquires an asset already owned by the lessee, and leases it back on normal leasing terms. This can be a useful way of releasing cash tied up in business assets.
A transaction in which the seller retains the use of the asset, such as occupancy of a building, by simultaneously signing a lease (usually of long duration) with the purchaser of the asset at the time of the sale. By so doing, the seller receives cash for the transaction, while the buyer is assured a lease, and thus a fixed return on his or her investment.
A financial device which an owner of land may employ to raise money and still have the use of the land by selling the land to the financier and immediately leasing it back for the period the owner wishes to use it.
An arrangement where equipment is purchased by a lessor from the company owning and using it. The lessor then becomes the owner and leases it back to the original owner, who continues to use the equipment.
If your company already owns its own vehicles, your fleet of vehicles could be purchased at an agreed realistic market value and then leased back to you through the funding method of your choice. This method removes any residual value risk for your company and would enable a cash injection into your business thus increasing your working capital.
An arrangement whereby a person sells an asset to a buyer and retains use or occupancy of the asset after the sale.
a procedure in which a company sells its assets to a leasing company and then leases them back from the buyer.
The sale of an asset to another and then entering into an agreement to lease it back again. This technique frees up capital or generates capital. There are often favorable tax benefits to this type of deal.
An arrangement whereby an investor purchases real estate owned and used by a business and then leases it back to that business.
A simultaneous transaction where an owner/user sells a property to an investor and leases it back. The seller is converted from an owner to a tenant, typically long term.
A facility where we buy a customerâ€(tm)s existing vehicle fleet and then lease them back to the customer. Allows customers, where they originally purchased their fleet outright, to enjoy the benefits of contract hire.
A transaction in which the Grantor (Seller) in a deed to a parcel of property sells it, but retains the right to continue to possess or occupy it, by simultaneously leasing it from the Grantee (Buyer).
An arrangement whereby a property is sold, with the vendor simultaneously being granted a lease on the property by the purchaser, generally either at a rack rent or at some lesser rent related to the price paid.
Where the vendor sells the property to the purchaser, then leases it back immediately for a long term.
An arrangement whereby a freeholder or lessee sells his interest in a property for an agreed sum and takes back a lease on the whole or part of the property from the purchaser, generally either at a rack rent or at some lesser rent related to the price paid.
The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Sale and leasebacks are popular methods of raising cash by businesses that own property assets.
A situation in which the grantor in a deed to a parcel of property sells it and retains possession by simultaneously leasing it from the grantee.
The sale of an asset to a buyer who immediately leases it back to the seller.
A transaction in which used equipment is purchased from the lessee by the lessor. Title to the goods passes from the lessee to the lessor and the equipment is then leased back to the same lessee on normal commercial leasing terms. Care is exercised to ensure that the lessor has good title to the equipment before leasing begins. Not valid in Scotland.
A mutually convenient transaction whereby a seller retains the use of an asset, such as occupancy, by a lease agreement with the purchaser of the asset at the time of the sale.
A transaction in which an owner sells his or her improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises.
A transaction in which, typically, an owner sells his improved property and as part of the same transaction signs a long-term lease and remains in possession.
A company may sell its own debt-free property (long-term asset) to acquire working capital. After the sale, the former owner leases the property. The company has not acquired more debt, but has added cash to expand inventories, research and development, plant equipment, or machinery, or as a less expensive means to acquire cash. The sale of the long-term asset also avoids adding debt to the company’s statements of financial condition.
The seller of a property retains occupancy by concurrently agreeing to lease the property back from the purchaser.