LEASEHOLD
Our View:- A
route perhaps for the more confident operator
with profit related advantages, although running
costs may be higher.
|
LEASEHOLD Our View:- A
route perhaps for the more confident operator |
| Obligations to Landlord: |
| Leasehold obligations to the landlord are very similar to that of a tenant. However, dependant on the style of the agreement, the Lessee will be responsible for full repairs and maintenance of the property, together with full Insuring liabilities. Similar style agreements may place limited repairing obligations on the Lessee. It is therefore prudent to obtain a structural survey on the premises prior to signing the Lease. Unlike Tenancies, you will in this instance require the services of a Solicitor to assign the Lease. |
| Agreements: |
| Lease Agreement terms can vary considerably and are applied to a set period of years. On new (Nil Premium) Leases, and providing the terms of the lease have been fully met, the lessee would have the right to sell on the unexpired portion of the Lease after an inital period. The Lease can then be referred to as being Assignable. The asking price for the remainder of the Lease would include the full trade inventory, with the addition of a premium. The secondary element is heavily dependant on the proven profitability of the premises and audited accounts would be required by the purchaser. |
| Rents: |
| As with Tenancies, rents are intially based on the historical trading records of the premises and should relate to that of a fair commercial rent for this type of outlet. During the Lease period and following your own possible investment in the premises as a lessee, such investment should not initiate a rental increase. Rents are reviewed throughout the period of the Lease normally five yearly, but in the meantime tend to be annually index linked. |
| The Profits: |
| The profits of the outlet are entirely yours as are the costs of running the business (these costs are normally tax deductible). As you operate on a self employed basis, your profits are dependant on the prices you charge for your sales which is under your control, although of course local competition would need to be considered. |
| Applications: |
| Applicants for New Non Premium Leases are considered by the Business Development Manager or Area Manager in much the same way as that applied to Tenants. This will require the completion of an application form. See Applicant Profile. |
| Assignable Leases:
(Sales) |
| Should you wish to purchase the unexpired portion of the Lease, then providing you are able to raise the asking price, together with an allowance for Stock and advance rent, and providing you are holding a Personal Licence and subject to an informal meeting with the landlord, you can take possession at completion. The Lease remains fully assignable throughout the remainder of the term providing the terms of the lease are fully met. Subject to the status of the purchaser, and with consent of the Landlord, a charge can be applied to the Lease for financing purposes. For Sales and Viewing enquiries please contact our office as indicated on the house details. |
IN ALL INSTANCES WE STRONGLY ADVISE YOU SEEK APPROPRIATE LEGAL ADVICE BEFORE ENTERING INTO ANY AGREEMENT OF WHICH YOU ARE UNSURE OF THE IMPLICATIONS