Other leases
Many businesses have equipment like photocopiers, electronic scales or games machines that are held on a lease. First, check whether or not the lease is a regulated agreement under the Consumer Credit Act 1974. Many lease documents are complex and specialist help may be required.
A business equipment lease runs for a number of years, during which time the owner of the goods (which may be a finance company) simply charges the rent to use them. At the end of the period, there is no automatic transfer of the goods to the lessee but, in practice, items are often not taken back by lessors. A lease usually contains a provision for early settlement. However, in many cases, this figure is likely to be almost as high as continuing to pay rent until the end of the lease period.
Business leases are complex and, since the sums of money involved can be substantial, expert advice should always be obtained before reaching any agreement with a lessor about early settlement. Trading standards departments may be able to provide such advice.