Selling future income

jasonmoley

Hi, I would like to raise some capital for another investment on the back of the following.


I have leased some land to a blue chip company that extracts gas. The lease agreement of 15 years (14 years left) generates an annual income of £35k per annum payable in quarterly instalments so there is still £490k left as future income. If I wanted to "sell this lease on" and generate capital income now, how do I go about valuing this and where would I sell this ?. Do I need to engage a broker - if so where do I find one ? Thanks for your help.

le_loup

If you are talking about totals in excess of half a million, don't you think you need a bit of professional advice?

Freecall

It is generally recognised that turning capital into income is easy but rather more difficult the other way around.

To fully 'sell' your future income stream will require a raft of due diligence on the part of the buyer and although it may be more solid than a salary for example it will be a special case and therefore complex (for complex read expensive).

Your best bet is probably to retain the income stream for yourself and raise a loan against it. Obviously you have all the usual sources for this such as the banks but you might be better off rate-wise on one of the peer to peer sites.

Just a suggestion.