The situation
Owned premises tie up capital that could fund equipment, hiring, or acquisition. Bank debt against the property caps out at 65-70% LTV and carries covenants. A sale-and-leaseback releases 100% of value, cleanly.
How we approach it
We introduce specialist SLB investors (pension funds, family offices, income-focused REITs) and negotiate the lease terms — length, rent, review pattern, break clauses — so the trading business retains the flexibility it actually needs.
What that looks like in practice
- Typical lease lengths 15-25 years with 5-year upward-only reviews
- Rent set at market or slightly above to maximise capital value
- Buyer's yield usually 6.5-8% depending on covenant and location
- Alternative: refinance up to 75% LTV instead — we model both
- Tax implications reviewed with your accountant before commitment
Typical timeline
- Week 1Property and covenant appraised, indicative price and rent modelled.
- Weeks 2-6Marketing to SLB buyer pool, heads of terms.
- Weeks 6-14Due diligence, lease drafting, completion.
Common questions
Isn't SLB always more expensive than a mortgage?
Sometimes, sometimes not — depends on covenant, yield environment and how long you'd hold. Where you need 100% capital release and the covenant is strong, SLB often wins.
What if my business needs to move in five years?
Break clauses can be negotiated but they suppress the capital value. Better to be honest at outset — if the property isn't strategic, sell it outright.
Any accounting impact?
Under IFRS 16 the lease sits on the balance sheet as a right-of-use asset. Your accountant will want to review the treatment before committing.
Model the SLB vs refinance comparison
Tell us the property and current use — we'll come back with both routes priced honestly.