New salon and council lease

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Lpolky

Well-Known Member
Joined
Feb 17, 2012
Messages
213
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15
Location
Bracknell
Hi guys,

Just after any advice really.
Looking at buying the lease for a salon where the lady is retiring. The salon itself needs a lot of work as very dated plus no clients on her database etc as so old school but it's been in the village for 30 yrs so people know it's there. It's just been run down as the current opener is retiring so all her clients are elderly too so they are few and far between.

The premises is a council owned and very good yearly rent. The current owner wants to sell me the remaining 5 years lease and will change my name so I can take the lease over. We have come to a figure she wants is £28k but as I say this is literally for the lease and goodwill as there isn't anything in the salon of any use to me and needs a total overhaul.
I currently run a business around the corner for the last 7 yrs and have a strong client base and 2 staff with me currently so with another therapist I think it would fly.

Does anyone have any advice? Would you know if the council can change the rent at the end of my 5 yrs lease? Maybe would increase slightly but as long as it wasn't a massive increase.
I would be putting everything into the salon and set up costing a good 5k at least so wouldn't want the council to increase it to much after my 5 years ended. I would be kind of trapped I suppose.

What would I be looking at for utilities and business rates on top of my monthly outgoings?

Many thanks
 
I don't know much about leasing property, but 5 years isn't a long time, you could get it running great with good profits, then the council won't renew or renew at a huge increase. You need to talk to the council to see if they can do anything.

Is the owner wants out, offer her less, she can only say yes or no...
 
Not my area really, but can the current owner really assign a council lease to someone else in return for cash? I would get this checked.

Even if they can, I would guess that £28k for a 5 year lease is a lot and as @Beckybee says, go in with an offer. If the current owner still has a 5 year commitment and little business left to support it, they may realise that a lower selling price is their only option.

Re the utilities and rates, the Sellor should provide these figures to you (along with copies of the latest bills) as part of your due diligence (pre purchase) work.
 
Thankyou both for your comments. Yes it sounds not so good when written down. I have emailed the council so will defiantly speak with them first and get some more info before I commit to anything with a price. Thankyou x
 

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