Sale and Leaseback

jche6075 on 06/07/2017 - 09:01

Hi I have a sale and leaseback from the bank for 4 years for a fitout to my new premises whih includes new carpet and painting etc.
I make monthly lease payments on it and have a balloon payment at the end of the 4 year term where I have the option to buy from the bank.
If I do not exercise the option to buy at the end of the term, how exactly does the bank take back the new carpet and painting etc??
Thanks.

Financial

Comments

  • Baysew on 06/07/2017 - 09:44
    +4

    Ask the bank?

  • QW3RTY on 06/07/2017 - 09:46

    I assume that this is a commercial lease (e.g. retail shop) that you have sold and now occupy as a tenant (?) and you've got a first right of refusal at the end of the Lease.

    Before making any further assumptions, what does your Lease say?
    If it's a commercial lease, it should stipulate exactly what condition the premises should be handed over in.

    If the carpet was laid before you sold and leased, it's most likely the property of your landlord.
    If the carpet was laid after you leased, you may have to tear the carpet up. It all depends on the clause within your lease.

  • jche6075 on 07/07/2017 - 07:58

    Thanks all.

Login or Join to leave a comment
Login Join