We want to help you with your business purchase so here are some frequently used terms, expressions & explanations
Stock at value – all the prices of the businesses we have listed are plus stock at value. The stock is the goods purchased to re-sell, for example, a general store would purchase its stock & fill the shelves with items for sale. When a sale is due for completion a stock take needs to be carried out & the purchaser will buy the stock at cost price on the date of completion.
Fixtures & Fittings – all prices for the businesses we have listed include fixtures & fittings (unless otherwise stated) an inventory of the included fixtures & fittings will be available prior to purchase.
Freehold or Leasehold – if you purchase the freehold, you own the property with no rent payable for the building. If you buy the leasehold, you will take an assignment of an existing lease or sign a new lease, thereafter paying the agreed rent for the property.
Lease – A lease is a legally binding contract between a tenant and a landlord and gives you the right to operate your business from the property. If you take over a lease of a premises, there are two documents, an Assignment and a Licence. The Assignment is the transfer of the lease from one tenant to another and a Licence is to allow the assignment to go ahead. If you sign a new lease, the lease is normally between 6 years and 21 years, the longer the lease the greater value your business usually has.
Rent Reviews – During a lease term, the premises will be subject to rent reviews. The landlords will review the rent and compare the current local rental values to the property you occupy before evaluating the new rent.
Shop Usage – Commercial premises are granted planning permission to operate certain trades, here are the details of the most commonly used ones.
- A1 Shops, Post Offices, Sandwich Bars, Internet Cafes, Domestic Hire Shops, Dry Cleaners, Ticket & Travel Agents, Hairdressers
- A2 Financial Services, Banks, Betting Shops & Professional Services. Principally where services are provided to visiting members of the public (is also permitted to change to A1 where there is ground floor window display)
- A3 Restaurants & Cafes – Used for the sale of food for consumption on the premises (is also permitted to change to A1 or A2)
- A4 Drinking Establishments, Public House, Wine Bar, primary purpose is the sale & consumption of alcoholic drink on the premises (is also permitted to change to A1, A2 or A3)
- A5 Hot Food Take away, use for the sale of hot food for consumption off the premises (is also permitted to change to A1, A2 or A3)
EPC’s – Energy Performance Certificates are needed for marketing a business or commercial property for sale click here for information of EPC’s