business premises questions

[shadowninja]

Just wondering... is it better longterm to own freehold or is leasehold ok? Also, what is the typical leasehold period? (I only really know about leasehold flats and have seen some business premises with just 15 years left. Is this bad?)

Anyone recommend a decent website for viewing business premises available?

Edited by shadowninja on Tuesday 10th October 13:35

[chrisgr31]

shadowninja said:

Just wondering... is it better longterm to own freehold or is leasehold ok? Also, what is the typical leasehold period? (I only really know about leasehold flats and have seen some business premises with just 15 years left. Is this bad?)

Anyone recommend a decent website for viewing business premises available?

The debate about Freehold or Leasehold depends on too many other factors, although as a general principle by owing a property you benefit from capital appreciation (hopefully).

These days most people prefer short term leases the longest commercial lease is usually around 25 years, and although you can get an annual lease 5 years is shortest commonly available. Generally for the same property you'll pay more rent per annum for a shorter lease, this is due to the risk of the Landlord having void periods between lettings.

There is no real decent website for commercial properties, you need to look at sites for local agents etc. Where in country are you looking and what for?

[shadowninja]

Thanks for the reply. Does make sense, I guess.

Am trying to find out info for someone who wants to set up a health food (etc) shop in Surrey or Sussex.

-Darren

[V8 EOL]

shadowninja said:

Am trying to find out info for someone who wants to set up a health food (etc) shop in Surrey or Sussex.

Not going to sell lentals I hope...

[The Londoner]

chrisgr31 said:

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These days most people prefer short term leases the longest commercial lease is usually around 25 years, and although you can get an annual lease 5 years is shortest commonly available. Generally for the same property you'll pay more rent per annum for a shorter lease, this is due to the risk of the Landlord having void periods between lettings.

Might be possible to do shorter than 5 years, either 3, or a 5 with a break after 2 or 3. Really depends on where you are looking and how desirable the pitch is i.e prime or secondary. Also worth think about fag end leases with only a short period to run, assuming they are within the Act and you have the ability to renew.

[shadowninja]

V8 EOL said:

shadowninja said:

Am trying to find out info for someone who wants to set up a health food (etc) shop in Surrey or Sussex.

Not going to sell lentals I hope...

means more pie for the rest of us...

[chrisgr31]

The Londoner said:

Also worth think about fag end leases with only a short period to run, assuming they are within the Act and you have the ability to renew.

Indeed we have recently assigned a warehouse where the lease had 6 months to run. Incoming tenant needs to watch for any delapidations liability though!

[chrisgr31]

shadowninja said:

Thanks for the reply. Does make sense, I guess.

Am trying to find out info for someone who wants to set up a health food (etc) shop in Surrey or Sussex.

-Darren

I am based in Crawley but am not in agency so can't offer anything.

What I can do if you email me is suggest what agents might be worth trying. Remember to negotiate and I also suggest speaking to shopkeepers in the area to find out what rents they are paying. You won;t be popular if you pay an inflated rent and yours is quoted to everyone else!

[Piglet]

The big question is does this person want/need to invest in the business or the building that the business is in?

If buying the building means that there is no money to build and grow the business then they might end up with a nice building at the end of it and no business. (of course in itself that might not be a bad thing!).

Lots of businesses work very well out of leasehold premises and regard having to invest in a capital asset as a liability in itself.