Finance Leasing Manual - FLM30.02

Cases with no sale-and-leaseback

In some cases the Bank group will buy a new (or second-hand) asset which the Borrower group hasn't previously owned or had any interest in. For example, the Bank might buy the freehold in a new office block from a builder. This will be at the direction of the Borrower who wants to use the offices in its trade etc. So there is a lease but no sale and lease-back; otherwise the general object is the same.