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.
