Hello sir,
Just wanted to understand what premium in uk leasing of properties mean ?
Is it a large sum of overall rent paid in advance ?
Or is it key money one pays exclusive of rent, in order to acquire the rights to leasing ?
Thankyou
Ask the Tutor ACCA TX-UK
Meaning of Premiums on Lease
Firstly do not worry about "what it is" - you simply need to be able to correctly deal with the income element of the premium paid or received as shown in the lectures and notes. A premium however represents a one off payment made by a lessee to a lessor as part of the terms of the lease which may, for example, be as a result of certain expenditure incurred on the property by the lessor prior to the commencement of the lease
Thankyou very much sir for the answer.
I personally like to understand the logic or background of everything I study if made possible :)
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