A lease premium is a non-refundable lump sum payment made by the tenant to the owner upon the signing of the tenancy agreement (e.g. a consent fee payable to the owner for accepting the transfer of tenancy from the old tenant to the new tenant).
What is a premium on a property?
A premium is a sum paid on the creation of an interest in property. As such it is capital on normal principles.
What are the 3 common types of leases?
A premium is a price paid for a lease. A lessee (tenant) may be willing to pay such a price if the rent is below market value or because there is some other reason why he wants to rent a particular property. A lease always specifies a rent.