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Any experienced in commercial property leasing? Please advice

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We have seen a convenience store business for sale and their 15y lease expires end of the year. They are asking for 50k for goodwill/fitting plus hire staff and stock at cost to renew and sub lease… Read More
adi0604 Avatar
4m, 2w agoPosted 4 months, 2 weeks ago
We have seen a convenience store business for sale and their 15y lease expires end of the year.

They are asking for 50k for goodwill/fitting plus hire staff and stock at cost to renew and sub lease to us. They have sent last 2yrs a/c which only shows 10k and 8k annual profit. We don't intend to run convenience store and want to open takeaway. So no real benefit of goodwill and fittings.

Now I need to know how to best negotiate with sellers agents. They keep on asking to send offers and not really helping understand.

Can we just bypass and go direct to freeholders?

Or do we have to pay to get the existing lease. If so how much it's worth?

Really need help on negotiating.

Thanks in advance.
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adi0604 Avatar
4m, 2w agoPosted 4 months, 2 weeks ago
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#1
it's not worth anything to you. you just want the property you will be best speaking to a property lawyer and get suitable advice.
#2
So the property is currently licensed for A1 use as a shop, but you want to turn it into a takeaway being an A5 use. Before you negotiate a lease or buy a property for your business, check whether you need to obtain planning permission for your intended use, and, if so, your chances of getting it.
Don't enter any negotiations until you've spoken to the council.
As justanothercid says, as it's not worth anything to you.
You would be better off paying £50k for an outlet already with A5 use with all the fittings needed for a takeaway.
#3
Toptrumpet
So the property is currently licensed for A1 use as a shop, but you want to turn it into a takeaway being an A5 use. Before you negotiate a lease or buy a property for your business, check whether you need to obtain planning permission for your intended use, and, if so, your chances of getting it.
Don't enter any negotiations until you've spoken to the council.
As justanothercid says, as it's not worth anything to you.
You would be better off paying £50k for an outlet already with A5 use with all the fittings needed for a takeaway.


Yes have checked and as there are another takeaway in the village it is very unlikely I won't get A5. Not many properties come up in the village where we intend to open.
Is it possible to speak to freeholder directly? Or current leaseholder gets to decide if they wish to renew or surrender lease?

Already tried few property lawyers and they all say we come into pictures once the negotiations are done and you need to do agreement. If anyone knows any Propery lawyers in Manchester please forward details. Much appreciated.
#4
adi0604
Toptrumpet
So the property is currently licensed for A1 use as a shop, but you want to turn it into a takeaway being an A5 use. Before you negotiate a lease or buy a property for your business, check whether you need to obtain planning permission for your intended use, and, if so, your chances of getting it.
Don't enter any negotiations until you've spoken to the council.
As justanothercid says, as it's not worth anything to you.
You would be better off paying £50k for an outlet already with A5 use with all the fittings needed for a takeaway.


Yes have checked and as there are another takeaway in the village it is very unlikely I won't get A5. Not many properties come up in the village where we intend to open.
Is it possible to speak to freeholder directly? Or current leaseholder gets to decide if they wish to renew or surrender lease?

Already tried few property lawyers and they all say we come into pictures once the negotiations are done and you need to do agreement. If anyone knows any Propery lawyers in Manchester please forward details. Much appreciated.


like a previous post said speak to council first another takeaway in area isn't a sign of yes or no in anyway. on one hand it may be a hinderernce in getting another to open suh as objections by previous business or neighbours moaning about it which is a very real concern in some areas people really don't like new takeaways opening up. have u looked into things like parking and other things which may go towards against ur application for a change of use also some areas restrict timing say 10 am till10pm which maybe a disaster for u. Finally Yes u can go directly to the owners nothing stopping u from negotiations with them direct only issue is finding out who they are sometimes.
#5
What exactly do you think you are paying the £50k for?
Remainer of a 10 month lease
Stock that you've got to sell
Staff that you do not know and have the responsibility of paying their wages
Possible profit of £6666 ( or less if you have a closing down sale)
Possibility of not getting the A5 use as the other takeaway will object, any residents may object and the council may deem that a village needs a convenience shop more than another takeaway.
You need to contact the freeholder to see if they can apply for the change of use before you enter into any sort of negotiations.
Is the business being sold via an agent?

Edited By: Toptrumpet on Feb 11, 2017 11:19
#6
50K agent is asking for goodwill/fittings and fixtures (counter, aisles etc) stock will be extra at cost. Which is of no use to me, hence asking for advice here, was hoping someone must be in this business, had similar experience or property lawyer.

As I said checked with council and they said it is very unlikely they will not change of use to A5 in this particular location. Obviously will can only know for sure is once I apply.
Plenty of Parking and access.
If I go directly to owners I am not sure how renewable lease works with current occupier.
#7
If you don't get any luck on here, try posting your question on Ukbusinessforums

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