Should I buy salon?

[xkayla_herex]

So i am having abit of a dilemma at the moment, I am currently renting a beauty salon I have been here for 5 years now and was supposed to re-new my lease in April just gone.

My landlords (I have two landlords) kept putting the renewal of my lease of kept making excuses such as loosing paper work and having to start again etc. then he accidentally added me into an email where one landlord said to the other that the buyer has asked to hold fire on the completion of the lease (meaning mine)

Turns out my landlords are looking to sell- they own four shops in a row including mine and have been trying to get permission to rebuild our shops and put flats on top. Planning permission has been denied so many times they have decided to give up but are not looking to sell to me or other shop owners but someone who will buy all and is a developer (I've looked the buyer up and This man seems to work on behalf of people finding premises for them his clients are companies like sainsburys, wickes etc so my guess is maybe he's going to buy our properties and something else will be built)

I have approached a shop a few doors up from mine who own their building and are looking to sell (my landlords buyer has also been intrested in buying this but not sure if he has offered enough or she said he hasn't for back to her) I went and looked inside and it needs a lot of work it's a hairdressers so isn't set out for a beauty salon and because of the shape it's going to be difficult and exspensive to do. Also the asking price is quite expensive too as she's selling it as if she would sell it to a hairdresser so If I want it I'm going to have to buy the buiness too.

Sorry too make this topic so long but my question is what do you think I should do;

Buy the hair salon even though it will cost loads initially to do up and may not look as good as I would want it to. I have a good client base who are local so don't really want to move too far so this one is ideal location.

Or do I risk staying at mine, and hope they don't want to knock our shops down or don't get planning permission for it? Ive worked out that if the new buyer is looking to turn our shops into something else by time they get planning permission and for the actual sale to go through it will give me at least another year left at my salon so am I just to stay put see what happens and if I loose my shop and can then find somewhere else or go mobile?

What would you do I would really appriciate any advice as this is really troubling me.

 

[libbylou]

I think before anyone can give you advice , you need to see a financial adviser.
They will work out your finances , and advise on borrowing and repayments etc. and if you could get a mortgage. Tbh even though the media says different, i still dont believe the banks are lending to small businesses. If you are then in a position to buy the building, i would say go ahead. If not i would look to move , the pressure of trying to run a business not knowing when your landlord is going to ask you to leave, would be to much for me. good luck and hope you get it sorted soon. x

 

[xkayla_herex]

Thank you for your advice, I have got the funds for the salon sorted already that's not a problem, I just think it's could be unlikely for them to get planning permission anyway as my salon is next to a railway station the train tracks are right behind us so for someone to come and destroy all the shops and rebuild them would be a nightmare for the commuters ands it must be dangerous doing building work so close to the railway tracks which is probably why they didn't get permission all the times before so would I be silly to move on the basis of what might happen? Considering this hair salon is not a nice as the shop I am in and the layout won't look that great.

Am I just to risk it and in a year or possibly longer (they have to give 9 months notice and the sale hasn't even gone through yet- if it goes ahead it's not 100%- and to get planning permission will take time too) then when and if that happens start looking for another shop or go mobile or just look at other options?

It's hard it seems silly to risk loosing my salon but it also seems silly to move my shop and spend loads of money on doing the up- on the basis of what might/could happen.

For all I know this guy could be buying it for an investment himself and carry on renting to us?

 

[BannerPenguin]

Thank you for your advice, I have got the funds for the salon sorted already that's not a problem, I just think it's could be unlikely for them to get planning permission anyway as my salon is next to a railway station the train tracks are right behind us so for someone to come and destroy all the shops and rebuild them would be a nightmare for the commuters ands it must be dangerous doing building work so close to the railway tracks which is probably why they didn't get permission all the times before so would I be silly to move on the basis of what might happen? Considering this hair salon is not a nice as the shop I am in and the layout won't look that great.

Am I just to risk it and in a year or possibly longer (they have to give 9 months notice and the sale hasn't even gone through yet- if it goes ahead it's not 100%- and to get planning permission will take time too) then when and if that happens start looking for another shop or go mobile or just look at other options?

It's hard it seems silly to risk loosing my salon but it also seems silly to move my shop and spend loads of money on doing the up- on the basis of what might/could happen.

For all I know this guy could be buying it for an investment himself and carry on renting to us?

I seriously wouldn't rely on the train station meaning they won't build around it. My local station in Essex, over the past couple of years has built luxury high rise flats. They're currently on there 3rd block building and buying an extra building that was an old ford owned building and tearing it down and putting a new block there. These flats are literally 20-30 steps to the train station entrance. It increases housing in my area and its a direct line to london so lots of commuters live there. The council are generally all for these type of projects when done right.

 

[xkayla_herex]

I seriously wouldn't rely on the train station meaning they won't build around it. My local station in Essex, over the past couple of years has built luxury high rise flats. They're currently on there 3rd block building and buying an extra building that was an old ford owned building and tearing it down and putting a new block there. These flats are literally 20-30 steps to the train station entrance. It increases housing in my area and its a direct line to london so lots of commuters live there. The council are generally all for these type of projects when done right.

Oh really :-s was it built near the actual train tracks though? The train tracks are right behind my shop really close.

I know it's really stupid risking loosing my business but I also think is it silly moving when I don't even know if this Is actually happening I just know it is a possibility.

I could move and my current shop be fine for years!
I said to my landlord I would be interested in buying it myself and he said at the present time he would not consider selling the property. (Not sure if this meant at all or just to me)

He then said he is going to chase my solicitor to sort out my lease- whether he does complete my lease I don't know but even if he does he can just give 9months notice when and if they get planning permission.

 

[BannerPenguin]

Oh really :-s was it built near the actual train tracks though? The train tracks are right behind my shop really close.

I know it's really stupid risking loosing my business but I also think is it silly moving when I don't even know if this Is actually happening I just know it is a possibility.

I could move and my current shop be fine for years!
I said to my landlord I would be interested in buying it myself and he said at the present time he would not consider selling the property. (Not sure if this meant at all or just to me)

He then said he is going to chase my solicitor to sort out my lease- whether he does complete my lease I don't know but even if he does he can just give 9months notice when and if they get planning permission.

Yeah it was. The flat overlook the tracks and the bridge. If you jumped out the window you'd land on the tracks ha.

 

[libbylou]

Make sure your new lease includes the 9 months notice. If your landlord is trying to sell to a big corporation, they will wont you out asap, they will not be waiting for planning permission before they evict you. A few months rent on a little shop means nothing to multi million pound developers. x

 

[xkayla_herex]

Make sure your new lease includes the 9 months notice. If your landlord is trying to sell to a big corporation, they will wont you out asap, they will not be waiting for planning permission before they evict you. A few months rent on a little shop means nothing to multi million pound developers. x

Thank you for your advice I will make sure it definitely has the 9months notice.

That's a good point you have made but as there is four shops that is paying rent surely they would want to keep us on until they get planning permission as this could take months and if their planning application gets refused then they are left with four empty buildings making no money At all. Also if they want me out quick then they will just do that by not completing the lease, although it hasn't been completed as if yet but hopefully they will get it sorted ASAP.

 

[libbylou]

Well i am no legal expert, but i should think if your lease as expired and your landlord has not renewed , then surly the old terms and conditions still apply, but that would be a matter for the legal experts. Do not count on the developers wanting any of the buildings occupied , in my experience they prefer them empty. If they are going to the expense to buy them, and they do not buy at retail value , they buy at development value, then the kind of rent your paying would be small fry. x

 

[xkayla_herex]

So my solicitor has been in touch and said the landlords are willing to complete the lease (finally!) however they want to change the break clause from 9months to 6 months.

I have emailed my landlord to see if he will tell me what his intentions are with the property's of if he could advise me on his buyers intentions. I doubt he will tell me but it is worth asking!

I am getting a builder or someone to look at the hairdressers I am thinking about buying to see if it is possible to do what I want to it and estimate how much it would cost.

My dad seems to think If I brought this hairdressers I would struggle to sell it in the future (not sure why as it's in a great location by train station)
He said not many people actually buy their building but rent- what is your opinion on this do you think it is silly paying a lot of money to buy somewhere rather than rent?
Also the possibility of them doing building work and my new shop being next to a building site will affect me- do you think he is right do you think it will be a problem?

 

[libbylou]

Depends on how you view it, long term it could be a really good investment, especially if they develop say housing etc. You could buy the salon and then the developers may wont that to, making you a good profit. Long term i wished i had the opportunity to buy my salon, by the time my lease as expired i could have paid for it 5 times over, i rent from a big corporation so will never have that option. x

 

[xkayla_herex]

Depends on how you view it, long term it could be a really good investment, especially if they develop say housing etc. You could buy the salon and then the developers may wont that to, making you a good profit. Long term i wished i had the opportunity to buy my salon, by the time my lease as expired i could have paid for it 5 times over, i rent from a big corporation so will never have that option. x

That's what I thought there's always going to be someone who would want to buy it or even rent it.
And the repayments are the same as my rent now but at least by the end of it I will own the actual building.

 

[xkayla_herex]

So I decided to buy the shop but when I measure the shops and done a layout I realised it's just not going to be big enough for what I want, the treatment rooms won't be big enough :-(

I have now got to hope that I am able to stay at my salon for as long as possible.

My landlord has said their sale has fallen through as they didn't get as much money as they wanted.
Whether this is true or not I don't know, I hope so I just find it odd that he wanted to change my break clause from 9momths to 6 but he said it's to make my lease the same as the other tenants.