Introduction: Leasing: leasing of real property
The inclusion of real property at BLM00055 above may be unexpected but accountants apply the same criteria whatever the nature of the asset. Normally, any single letting of a building is not designed to achieve simply a banking turn for the landlord (the lessor). Landlords may take big risks and aim for an equity turn. In a boom they may do very well but, in a recession, they may be unable to find tenants, while their interest and maintenance charges still have to be met. But it is possible for real property leases to be structured on finance lease terms.