Not all business owners wish to purchase their business products upfront. Instead, you may borrow them for lease payments for an agreed period. This could suit your business needs, mainly where products are expensive and you need more cash flow. Therefore, you may decide to lease your business assets. For example, you may do this for office equipment such as your computers, or you may do this for significant assets such as your commercial vehicles. Although there are many different lease agreements for assets, you will also have various options at the end of the lease contract. This article will discuss examples of end of the lease term options in the UK for leased assets.<\/p>\n\n\n\n
If you lease an asset for your business, you will do so from a lessor as the lessee. This will involve hiring an asset for your company for a specific period rather than purchasing it outright. The lessor owns the asset, so has title to it, and you enjoy using the equipment in return for regular payments to the lessor. <\/p>\n\n\n\n
When your lease period ends, you own the equipment. Therefore, various options are open to you instead. These will depend on, for example:<\/p>\n\n\n\n
We discuss some standard options at the end of a lease in the UK below.<\/p>\n\n\n\n
When your lease agreement ends, the logical action is to return the asset to the lessor and let the lease end. This means you have no further commitment under the lease agreement. This is often the only option with lease agreements such as contract hire.<\/p>\n\n\n\n
If you take this option and return your asset at the end of the lease period, you should:<\/p>\n\n\n\n