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    Commercial Property, help to understand

    Looking into commercial property for the future 5 years or so and wanna get some understanding on some things, for this ill use this example

    rightmove.co.uk/com…tml

    It says
    PREMIUM £25000 for the business, goodwill and fixtures and fittings (full inventory to be agreed)

    So i'm assuming he is renting it off someone, and he is selling the lease if you pay 25,000£, then you have to pay the rent of 6750£,
    However the lease expires in 2 years, so you have to pay 38,500 basically to rent this place for 2 years then its not yours?

    Thanks

    7 Comments

    The property is taken by you for remaining period of lease. You wouldn't have rights unless you renew the lease after 2 years. However you will still have the goodwill (assuming there is) and furniture which you can take after 2 years. It would be good to negotiate a new lease if possible imho

    Original Poster

    missionary

    The property is taken by you for remaining period of lease. You wouldn't … The property is taken by you for remaining period of lease. You wouldn't have rights unless you renew the lease after 2 years. However you will still have the goodwill (assuming there is) and furniture which you can take after 2 years. It would be good to negotiate a new lease if possible imho



    for 38,500£ for 2 years for rent, seems bit high is'n it?

    Assuming the lease won't be renewed

    This is the purchase of a business, not the letting of a shop. I imagine that none of the premium is attributable to the premium. The premium is for the good will and any assets etc that the business has.

    The lease is £6750 pa, plus rates. Although the lease expires in March 2018, a lease for units that have good will attached like shops are normally inside, the Landlord and Tenant Act 1954. Therefore you have a statutory right to renew unless the Landlord can meet any of the statutory grounds to regain occupation, such as use the premises for themself

    Original Poster

    ericagradus

    This is the purchase of a business, not the letting of a shop. I imagine … This is the purchase of a business, not the letting of a shop. I imagine that none of the premium is attributable to the premium. The premium is for the good will and any assets etc that the business has.The lease is £6750 pa, plus rates. Although the lease expires in March 2018, a lease for units that have good will attached like shops are normally inside, the Landlord and Tenant Act 1954. Therefore you have a statutory right to renew unless the Landlord can meet any of the statutory grounds to regain occupation, such as use the premises for themself



    What does it mean by landlord meet statury ground to regain occupation? assuming like mis-use and such, but if just running a business legally he has no right too? and what are the normal costs of extentions, thankyou for the help

    whelan189

    What does it mean by landlord meet statury ground to regain occupation? … What does it mean by landlord meet statury ground to regain occupation? assuming like mis-use and such, but if just running a business legally he has no right too? and what are the normal costs of extentions, thankyou for the help


    Example in original post "such as use the premises for themself"

    don't forget

    LEGAL FEES The incoming tenant is to be responsible for the landlord's legal fees.

    [quote=ho5dow]don't forget
    LEGAL FEES The incoming tenant is to be responsible for the landlord's legal fee

    The lease will provide that the Seller (outgoing Tenant) is responsible. But your legal fees will be considerably more than, for example a residential house purchase
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