Notes to the accounts
20 Finance lease obligations
| Group 2007 £m |
Group 2006 £m |
|
|---|---|---|
| (a) Minimum lease payments under finance leases fall due: | ||
| Not later than one year | 6.1 | 6.4 |
| Later than one year and not later than five years | 24.4 | 26.0 |
| Later than five years | 110.1 | 122.4 |
| 140.6 | 154.8 | |
| Future finance charges on finance leases | (83.4) | (102.2) |
| Present value of finance lease liabilities | 57.2 | 52.6 |
| (b) Present value of minimum finance lease obligations | ||
| Not later than one year | 6.1 | 6.4 |
| Later than one year and not later than five years | 21.3 | 23.3 |
| Later than five years | 29.8 | 22.9 |
| 57.2 | 52.6 | |
Finance lease liabilities are in respect of leasehold investment property. Many leases provide for payment of contingent rent in addition to the rents above, usually a proportion of net rental income.
Finance lease liabilities are effectively secured obligations, as the rights to the leased asset revert to the lessor in the event of default.