Advice needed on taking over a leasehold on a salon

[nixnewcastle]

Hi im in desperate need of advice. I've been approached about taking over a leasehold on a salon. The leasehold will cost 12k and then the rent is £100 a week and then the electricity and all the rest of those bits and pieces on top. I really want to do it but im quite nieve in the sense i really dont know about lease holds or if im going to get screwed over with it. Advise anyone and what to ask and look for?

 

[Martin Duffy]

I have a 5 year lease on my premises, but didn't have to purchase the lease as at the time landlords were finding it hard to shift premises & wanted them filled. Here's a link that will outline the basics:

http://www.georgeandco.co.uk/pages/download/guidelbp.pdf

 

[rouge]

Find a business advisor. You can get free advice from some of them, that's what my friend did and she saved herself a whole heap of trouble and worry.

 

[daisyl]

The cost of my leasehold IS my rent! My leasehold is x amount/year over the lease period - of which is broken down into monthly figure.

I would not purchase a lease and then pay additional rent - however, I am not really sure of what others may or may not do! My lease also includes heating and lighting (telephone extra), which I negotiated at the time.

Not sure if I have been of much help. X

 

[nixnewcastle]

Thanks so much for all the advise guys you lot are stars!
I dont want to be paying for the leasehold either. I think with the economy the way it is there is no way i want to buy a lease hold and pay rent it's pretty pricey especially when its someone wanting to get rid of a business

 

[Lynne Baker]

Contact Business Link. They will give you lots of free advice and guidance.

 

[jes]

I don't think the £12K is for the lease. A lease is basically a contract between you and the landlord, you have to pay to have the lease drawn up but I imagine the £12k is to buy the business from the salon owner?

Anyhow, I'd have a talk to the landlord and get as much information from them as you can. How long is the lease for, ask about break clauses (very important), how much is the rent, does the rent include or exclude VAT, who's responsible for maintenance and decoration etc etc. However this is just you deciding if you are interested or not, so do not agree to anything! If you are interested see a solicitor and they will take over and cover everything mentioned above and much, much more

Jes

 

[jes]

Having said all that above I realise the £12k may be to buy the business and take over the existing lease... sorry.

Anyhow, similar things apply, ask the salon owner lots of questions without agreeing to anything. Add, 'how long has the lease left to run' to my above questions

Jes

 

[persianista]

You must get a solicitor to deal with commercial leases for you. They are very diferent from flat leases and you are generally tied into paying the rent for the full lease term. Your solicitor should explain all the clauses fully and in laymans terms before you go ahead.
If you are paying a lease premium to take over the existing fixtures and fittings etc, it's probably a good idea to find out what happened to the previous people. You can check out companies house or the London gazzette. If they went bankrupt then maybe the shop isn't in the right place for a salon. Tread carefully x

 

[RedAdmiral]

is the 12k key holding money? I think thats where someone say put a tile floor down/ CCTV in and wants the money back?

 

[nixnewcastle]

Thanks everyone, think im going to stick with what i have. It's only a small room but im getting business from it. Thanks for all the advice everyone

 

[blutopaz]

Just going to reiterate whats already been said, the likely hood is that the 12k is to buy the good will of the business.

The lease is worthless in 99% of cases and i say this with confidence as I am in the midst of leasing a property and have discussed everything at great lengths with my solicitor.

If you go ahead with it in the future do so only with a solicitor, they maybe expensive but they are worth their weight in gold