Financial Statements
18 Leasing
Operating leases with tenants
The Group leases out all of its investment properties under operating leases for average lease terms of 16 years to expiry. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
| 2007 £m |
2006 £m |
|
|---|---|---|
| Less than one year | 553 | 488 |
| Between two and five years | 2,232 | 2,031 |
| Between six and ten years | 2,523 | 2,332 |
| Between 11 and 15 years | 1,916 | 1,856 |
| Between 16 and 20 years | 969 | 1,062 |
| After 20 years | 1,140 | 1,112 |
| 9,333 | 8,881 |
Contingent rents of £1m (2006: £2m) were recognised in the year.
Obligations under finance leases
The Group's leasehold investment properties are typically under non-renewable leases without significant restrictions.
Finance lease liabilities are payable as follows, no contingent rents are payable in either period:
| 2007 | 2006 | ||||||
|---|---|---|---|---|---|---|---|
| Minimum lease payments £m |
Interest £m |
Principal £m |
Minimum lease payments £m |
Interest £m |
Principal £m |
||
| British Land Group | |||||||
| Less than one year | 2 | 2 | 2 | 2 | |||
| Between one and five years | 9 | 9 | 9 | 8 | 1 | ||
| More than five years | 217 | 187 | 30 | 200 | 173 | 27 | |
| 228 | 198 | 30 | 211 | 183 | 28 | ||