Finance Leasing Manual - FLM12.51

Ownership of leased assets: economic and legal ownership

Although the ownership provisions do not generally cause problems at the outset, they are indicative of the tension between the economic and legal ownership which is inherent to finance leasing. This can be a problem later on, in particular after the loan implicit in the lease has been repaid, or when the asset is sold. This is considered in more detail at FLM12.74.