Term used to describe the market or sale value of leased equipment (net of removal or disposal costs) at the end of the lease term. In most cases, it is projected or estimated.
Sometimes called salvage value.
With some exceptions, national bank lessors are subject to a rule that limits the residual value assumption made at the time the lease is created to 25 percent of the equipment's cost. Bank holding company leasing subsidiaries are subject to a 20 percent limit on the residual assumption. American Banker Glossary
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Usually refers to the value of a lessor's property at the time the lease expires. Bloomberg Financial Dictionary
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residual value UK US noun [C or U]
► (also residuals [plural]) FINANCE, ACCOUNTING the amount that something is worth after it has been used for a particular period and how much it could be sold for: »
Customers are pleased to use a product that has this kind of residual value.
Financial and business terms. 2012.