Leaseback
Zorg Directory » Real Estate » Leaseback
</p><p>In the world of real estate, the practice of leaseback involves companies selling properties they own and leasing those same properties back for themselves to use. Doing this allows the company to raise a large sum of cash in return for a regular small monthly payment. In this way, in financial terms, it is much like getting a loan. For taxation purposes, however, a leaseback arrangement may be much more favourable than a loan. Most tax systems will permit interest payments. </p><p> The use of leaseback clearly only makes sense if the company has owned the property for some time and there has been a significant change in its value. It is not uncommon for the property market in specific areas to suddenly heat up as the area becomes popular. In some cases, this can lead to companies holding hugely valuable property assets whose value they are unable to realise without relocating their business and enduring all of the disruption that entails.</p><p>