Any advice on putting a value on this.

[mpen]

About 4 years ago I bought and renovated an old bakery/shop and opened it as a sandwich/pie shop, the property has a two bedroomed flat above it with a seperate access and generates a rental of around £600 a month, I rent one of the rooms in the bakery out for £500 a month the property has a sale value of around 220k. this year I opened another shop using the same format but the shop is rented, the two shops have a combined turnover of over 500k, this figure increases a little every month.

soon I would like to sod off to somewhere warm and call it a day..as Im knackered.

what do you think would be the best way to deal with this

thanks

 

[nickfrance]

not knowing where this is it is not easy to put a price on , but when you sod off i wish you well , Spain is said to be still cheap and good winter , i am in France and not as cheap as Spain has something for everyone , and with your pounds they go a long way

 

[mpen]

Im in Lancashire just outside of Preston

 

[Talay]

If you know one property has a sale value of £220k then there you go, that's the price, discounted perhaps if your tenants have any surety of a long lease.

The shop you've rented which operates as your second pie and sandwich shop has a much more esoteric value. If you are filling the pies and making the sandwiches then it is a job where your salary is the profits from the business but if it operates without you and generates a net profit of £xxx, then that is your starting point. Length of lease, costs, etc. will play a huge part in the valuation.

 

[Socio South West]

How about keeping ownership of the shop... Sell the business and lease the shop area the business occupies to the new owners, along with the other branch, assuming that lease can be transferred: you can sod off but still have some income from it.

You will have more chance of selling the business if you don't expect anyone coming in to be able to buy the freehold of the shop.

Looking forward, you then have a nice investment property when you decide to realise that.

The value of the business depends on its profitability etc... Speak to a few agents and see what they suggest - but I understand RTA are best avoided!

 

[Rob2012]

wish I had your problems.

If you have children or someone you care about and wish to pass on maximum wealth then its best to lease out everything you have in England and get a mortgage in Spain or wherever you want to live.

That way you have constant income whilst increasing your property portfolio and overall value.

Alternatively you can invest in me

 

[mpen]

Im still none the wiser, the second shop I took on a short lease (two years left)
at the end of the lease I will be offered another 5 years or the option to buy the property, should I buy or keep renting ?

 

[mdj101]

If it was me and both businesses were profitable, I would keep the 1st property, buy the second then sell the businesses as a going concern and take rent from both the properties.

Rent from the 1st will be a nice little income, rent from the 2nd will pay the mortgage. At the end of it you will have two properties that you can either sell on later in life or leave to loved ones.

 

[Socio South West]

Im still none the wiser, the second shop I took on a short lease (two years left)
at the end of the lease I will be offered another 5 years or the option to buy the property, should I buy or keep renting ?

If you sold the business and transferred this lease as part of the deal (assuming it is transferrable) it wouldn't be your worry.... If you want out, why are you bothering yourself with a decision which is two years away?

Your only interest in it all once the business was sold would be the revenue from the various bits of the first property that you would still own