first identifies its leases as discussed above, then determines whether the leases, based on five lease classification criteria, should be classified as operating or finance.
If the lessor wishes to increase the rent, it must give the lessee
written notice at least 3 months before expiry of the second year.
The proposed standard recognizes that, while the lessee
may control the underlying asset, title is retained by the lessor.
Right to vary a lease Living in Leasehold Flats, along with many other publications for lessees
, can be downloaded freely from www.
In considering the tax treatment we have considered the tax treatment of the lessors assuming that the lessor is not in the same jurisdiction of the lessee
Research within our membership has highlighted at least 21 areas where friction can be caused between lessees
or where action by lessees
can make things run more smoothly for everyone.
Lessors report a receivable asset for amounts due from the lessee
, not an asset for the leased property itself, even though the lessor retains legal ownership of the property.
The lease would be a triple net lease, under which the lessee
would be responsible for all the property's costs and expenses.
is a registrant and operates a restaurant.
The deal was done six years ago in a lessee
's market, at fixed pricing very attractive to the lessee
Unfortunately, the wording of this clause can make the lessor an innocent victim of the named insured's fraudulent acts; ideally, the lessor has provisions in the leasing agreement with the lessee
to protect it in such cases.
The dispute between the World Trade Center lessee
and insurers is heating up, with the insurer that holds the largest piece of liability from the destroyed complex saying the lessee
has forfeited his right to rebuild the center by asking for an immediate cash payment for the actual cash value of the property.