This is often a route to realising funds quickly. That might be due to retirement, separating property interests & business, closing a SIPP, or fund raising.
- It converts property assets into capital without the need of the occupier to lose control of the building they occupy.
- It avoids costs usually associated with conventional debt financing for real estate transactions such as valuation, brokerage and bank commitment fees.
- Rental payments are tax-deductible.
- If there is borrowing on the asset it will remove the associated debt from the balance sheet and improve the company’s debt to equity ratios