How it works
Bringing forward income that would otherwise arrive over decades
A renewable energy lease is a long-term contract — rent paid annually, often for 25 to 40 years. Capitalising it means exchanging some or all of that future income for a single payment now.
Capital instead of a drip feed
Instead of waiting for rent to arrive year by year, you receive a multiple of your annual rent as a lump sum today. The exact multiple depends on factors including the lease term, indexation, site location, and the specific project details.
You choose how much
There's no obligation to capitalise the whole lease. Landowners can release just the amount they need, retain the rest as ongoing rental income, and return later to capitalise more if their circumstances change.
Typical structures
Transactions are usually structured one of a few ways: a long lease over the income stream, a minority or majority interest in a corporate holding structure, a freehold sale with a buy-back option, or a full freehold sale. The right structure depends on how your land is currently held and what you're trying to achieve.
An indicative timeline
Initial conversations typically happen in the first week, followed by a lease review, an indicative valuation, structuring, due diligence, and documentation — with most transactions completing within around twelve weeks from first enquiry.