New guidance from the DfE (Department for Education) makes it even easier for schools to lease modular buildings for use as extra classrooms, sports facilities, canteens, offices and more.
New Guidance
LEA (Local Education Authority) Schools can now enter into finance leases for a range of assets, including modular buildings, without needing approval from the Secretary of State. A finance lease, also known as a ‘full pay-out’ lease, allows you to borrow the full invoice amount over the term. Unlike an operating lease, at the end of a finance lease, ownership of the assets can be transferred to a third party, such as a PTA or the Board of Governors, for a one-time fee, instead of entering a secondary rental period.
Schools can still opt for operating leases, but finance leases offer greater flexibility, particularly in terms of the assets that can be leased.
Difference Between an Operating Lease and a Finance Lease
An operating lease is a rental agreement where the lessee uses an asset for a set period, without taking ownership. It’s ideal for short-term needs or assets with a shorter lifespan, such as technology. At the end of the lease, the asset is returned to the lessee.
A finance lease involves paying for the full cost of an asset over the lease term, with the option to transfer ownership at the end, usually through a one-off fee. Finance leases offer more flexibility, particularly for long-term use and higher-value assets, while operating leases suit temporary or quickly depreciating assets.
Now Is The Time To Contact The Experts
At MPB, we have nearly 20 years of experience in providing the education sector with a range of modular classrooms that offer a cost-effective alternative to traditional brick and mortar structures. The great benefit of these units to schools and colleges is they can easily be customised to suit specific needs and quickly repurposed as those needs change, meaning you don’t have to pay out for a new room each time, just a small fee for reconfiguration.
And with the new finance leasing options, you can ultimately own the modular building at the end of the agreement term, saving your school budget a great deal in the future.
Get in touch with a member of our expert team and discover all the brand-new opportunities that are now a possibility for you.
