Property Lease

freddie123
freddie123 Registered Posts: 3
I wonder if someone could help me please? My client has bought a shop lease for £120,000 for 20 years and pays rent each month. I know how to deal with the rent but how do I account for the lease? He has used a mix of personal money and loans to buy it? Thanks in advance.

Comments

  • davealucas
    davealucas Registered Posts: 148 Dedicated contributor 🦉
    It should be treated as a fixed asset with an initial value of £120k. The lease could be written down over a period of 20 years.
  • freddie123
    freddie123 Registered Posts: 3
    Lovely thank you.
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