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Dilema! What would you do?
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fusar
Posts: 151 Forumite
Hi,
I own a shop in the midlands, and it is situated on the main high street of the town. It is not in the best condition, but only needs a bit of cosmetic up-dating. I have just secured planning consent to turn it into a take-away with a self contained flat above.
The property was an investment, and has been empty and on the market (either to rent or puchase) for a year or so, with three sales having fallen through, in all three cases due to the buyer and finance/partnerships.
Similar properties (such as next door) have been rented out for around £8000 per annum and sold for between £150-160K. The purchase price and associated fees of my shop has cost me around £125,000 in total.
I have just received an offer from someone that wants to rent the property for approx. 1.5 years and use it as a take-away. They will fully renovate the property (according to the planning consent) and want to pay £6000 per annum rent. They then want to buy the property after this rental period, but are only willing to pay around £125k for it. Plus they want us to agree to this amount in the contract before they move in as tenant.
I know that they want some sort of security that once the rent period is over that we sell the property to them, but I am not happy at deciding on an amount a year and a half in advance. Any views on this, or should I take the money and run (even though I have made no money, at least I would have the cash)?
The estate agent thinks I shoud take the offer "in these difficult times", but I think that she just wants her commission. The shop has been empty for a long time, but I am unsure.
Thanks and your thoughts would be appreciated!
I own a shop in the midlands, and it is situated on the main high street of the town. It is not in the best condition, but only needs a bit of cosmetic up-dating. I have just secured planning consent to turn it into a take-away with a self contained flat above.
The property was an investment, and has been empty and on the market (either to rent or puchase) for a year or so, with three sales having fallen through, in all three cases due to the buyer and finance/partnerships.
Similar properties (such as next door) have been rented out for around £8000 per annum and sold for between £150-160K. The purchase price and associated fees of my shop has cost me around £125,000 in total.
I have just received an offer from someone that wants to rent the property for approx. 1.5 years and use it as a take-away. They will fully renovate the property (according to the planning consent) and want to pay £6000 per annum rent. They then want to buy the property after this rental period, but are only willing to pay around £125k for it. Plus they want us to agree to this amount in the contract before they move in as tenant.
I know that they want some sort of security that once the rent period is over that we sell the property to them, but I am not happy at deciding on an amount a year and a half in advance. Any views on this, or should I take the money and run (even though I have made no money, at least I would have the cash)?
The estate agent thinks I shoud take the offer "in these difficult times", but I think that she just wants her commission. The shop has been empty for a long time, but I am unsure.
Thanks and your thoughts would be appreciated!
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