Premium Commercial lease

[CVB101]

Hoping to gain more information. I am a tenant in a commercial property. We took on a dilapidated building which was a shell (formally a pub) and reinstated it. We signed had a short-hold 4 year lease, upon this lease ending the freehold owner tried to get us out but couldn't under the landlord tenant act. We filed a section 26 notice for the granting of a new lease and have been holding over after petitioning the courts. We decided to sell in a cooperative sale/ freehold with business we built F&F, IP. goodwill. The agent has proposed that we simultaneously market and advertise both the freehold for sale alongside our business at a premium ( in essence we would give up our rights to a new lease and the lease would be assigned at a premium to a new tenant) from what we understand. What are the benefits to us to do this as the current leaseholder? Can we ask for extra money, in surrendering our lease, alongside the price we want for our business F&F, goodwill ? We added many improvements to the property, trying to understand the benefit to us and why the agent is pushing the agenda, and if this is a good strategy for us or continue to negotiate a new lease for assignment. Pros and cons would be helpful, as we are leary of the agent/landlord agenda.

 

[Paul Kelly ICHYB]

Welcome to UKBF.

Quick pointer/recommendation - paragraphs are good!

Can we ask for extra money,

You can ask for whatever you want, but that doesn't mean it is realistic or commercial!

Without owning the property or having a long lease, big investments if F&F are risky.

You have not mentioned what your business does and how successful it is.

 

[DontAsk]

I'm confused. How can you offer the freehold for sale, when you are leasing?

 

[bodgitt&scarperLTD]

Sounds like the freeholder wants you to sell the 'business' but without the value of a lease that gives your buyer rights of renewal.

I'd tell them if they want to buy you out, make a good offer!

Realistically, this hold over your landlord might be the only thing the business has going for it. Then again, the amount of starry eyed young couples willing to hand over thousands for a liability when it comes to the pub trade never ceases to amaze me.