What is a Leasehold Business?
A Leasehold retail business is
one that is operated by the leaseholder, who rents his premises
from the landlord (freeholder). A pub, restaurant, fish and chip
shop or other leasehold business can provide the purchaser with
source of income and usually a residential accommodation. Most
retail business premises are held on a 21-year lease (or less)
at a commercial rent, and the leaseholder is usually protected
by the Landlord & Tenant Act , which safeguards renewal. In
essence, however, a leaseholder is a "tenant" renting the
premises to carry on a business.
The real value of a leasehold business is determined primarily by the volume of turnover. Other factors such as level of rent, location and competition do have a significant bearing on value, but income is ultimately the most important factor. It must also be remembered that even the best-equipped business, set in a prime location, will be worth only fraction of the going-concern value, if it is closed.
At least 25% of them change ownership each year, so it is probable that every week around 20,000 buyers are looking for a commercial loan in a financial marketplace where there are precious few sources of finance.
Similarly, it would be reasonable to assume that many existing owners of retail businesses will require a commercial loan during the course of a trading year in order to either buy out a partner, discharge an outstanding VAT bill or refurbish their premises and will usually encounter serious problems raising funds from the usual High Street sources.
We can provide clients with access to leasehold business loans for variety of leasehold businesses ranging from retail outlets such as general stores, newsagents, off-licenses, post offices to catering businesses such as Pizza / fish & chip shops, takeaways, cafes, snack bars and all other types of fast food outlets. Finance is also available for Pubs, Wine Bars, Bistros and types of restaurants.
The real value of a leasehold business is determined primarily by the volume of turnover. Other factors such as level of rent, location and competition do have a significant bearing on value, but income is ultimately the most important factor. It must also be remembered that even the best-equipped business, set in a prime location, will be worth only fraction of the going-concern value, if it is closed.
At least 25% of them change ownership each year, so it is probable that every week around 20,000 buyers are looking for a commercial loan in a financial marketplace where there are precious few sources of finance.
Similarly, it would be reasonable to assume that many existing owners of retail businesses will require a commercial loan during the course of a trading year in order to either buy out a partner, discharge an outstanding VAT bill or refurbish their premises and will usually encounter serious problems raising funds from the usual High Street sources.
We can provide clients with access to leasehold business loans for variety of leasehold businesses ranging from retail outlets such as general stores, newsagents, off-licenses, post offices to catering businesses such as Pizza / fish & chip shops, takeaways, cafes, snack bars and all other types of fast food outlets. Finance is also available for Pubs, Wine Bars, Bistros and types of restaurants.