Share this content

Fixed Asset - Property

Can you have a property on the balance sheet you dont own?

Didn't find your answer?

I have a client who has a property listed on their balance sheet. It is now heavily written down and has been on there a long time.

However, I cannot see that they actually "own" the property itself? There is no direct mortgage but obv borrowing decisions have been made based on its presence..

They do have permission to be in it! But I was not aware that you can actually have something like a property owned by someone else on the balance sheet (without a lease or something similar?!) Any ideas anyone?

Replies (7)

Please login or register to join the discussion.

RLI
By lionofludesch
25th Jan 2021 23:25

Depends what you mean by ""own"" as opposed to "own". Why the inverted commas? What are you not saying that you'd like us to infer?

Thanks (0)
avatar
By L Green
25th Jan 2021 23:34

Hi, not "inferring" anything. I am saying "own" with inverted commas because, does anyone really own anything?!

Basically i am saying that the property has title deeds, and we dont think they are in the name of the business. But they do have their permission to be trading from that address. Should the property they are in be listed as an asset, and is there any circumstances that this could be the case ?

Thanks (0)
avatar
By Paul Crowley
25th Jan 2021 23:45

Limited company accounts, trade, partnership?

Thanks (0)
avatar
By L Green
25th Jan 2021 23:55

Hi Paul,
Ltd.

Thanks (0)
JCACE
By jcace
26th Jan 2021 00:14

In whose name is the property held? You should be able to find out from HM Land Registry.

Thanks (0)
avatar
By L Green
26th Jan 2021 00:25

yes, we are checking. We think maybe a current shareholder and previous director 50/50. but cannot be sure.

Thanks (0)
Replying to L Green:
avatar
By Wanderer
26th Jan 2021 07:23

Takes about 2 minutes to get the Land Registry entry. Why not do that first before surmising on the position then reading into something unconfirmed?

Thanks (2)
Share this content