Freeholder of my shop wants to sell

Charityworker

I've just signed a new lease on my shop which I've had just over a year. Today I noticed someone outside taking loads of photos. When I asked what he was doing he said he was a professional photographer who's been asked by the freeholder to take pictures as he's putting it up for sale. What does this mean for me? Guessing it's not good news.

molerat

Nothing much until your lease comes up for renewal, they will tell you who to pay the rent to when the time comes. Commercial property is bought and sold all the time.

angryparcel

Commercial property is bought and sold all the time with tenants in place.

They sell as investment property, you will just end up with a new landlord.

This happened to me 4 years ago when i had 8 months left on my lease, the new landlord was great until my lease come up for renewal and he wanted nearly double what i was paying, so i told him i would not be renewing. well he shot himself in the foot as since i left the shop has remained empty, so rather than him having some rental income he has non

martindow

I agree that there is likely to be an increase in rent when the lease comes up for renewal. Whoever buys it will think they can make more from it than the current owner is willing to sell for.

paddyrg

Just in addition to the above, you can stand your ground with rent - it's a ballsy move but you know your business and if it's worth paying more than you do. Smart landlords know that if they're trying to add £50/month to £1000/month rent, for each month the place is unoccupied they lose 18 (well, 20) months of the rent rise. Basically with the plane empty for a month, that's how long it'll take at the higher rent to get back to where they would have been by just letting you stay.

However, commercial leases can be fiddly - be cautious about doing any property repairs so the new landlord isn't going to just use you as a free repair then take the improved property to higher rent because they can.