Can anyone help with commercial property?

[adi0604]

UK commercial property:
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.

 

[free2rhyme]

What location.country are you looking for? Is it exclusively in UK only?

 

[Longterminvestor]

There are a few points to consider here:-

When the lease expires (assuming it is not renewed),the existing business has no real value
It is in the sellers best interests for your to make an early offer, not yours
The profit from the existing business is not relevant to you if you are going to open a takeaway
I presume the majority of the fixtures and fittings are of no use to you

 

[Myrsatech]

There are many online platforms which are having different types of commercial space for rent with different locations.

 

[nmb]

Also, be aware. If you were to take on staff from the old business you might have issues with TUPE which means their rights/service, etc would likely be transferred to you. Take advice!

 

[FWL]

Personally I would just wait until the lease expires, approach the landlord and take it from there. If the existing business is not viable going forward then you may well be able to take on a new lease with no issues carried over from the previous tenant/business.