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Questions regarding salon leaseholds

Discussion in 'General Business Forum' started by SomethingWitty, Oct 17, 2020.

  1. SomethingWitty

    SomethingWitty UKBF Newcomer Free Member

    16 0
    Hi

    I own a mobile beauty and massage service in London and we are potentially interested in finding good deals on salons post covid but I must be honest I have absolutely no clue about how the rents and leaseholds work. Anything I've looked at so far quotes both a leasehold figure and a rental figure.

    Could anyone help me out on it usually works with regards rents? I would either purchase the leasehold or rent from the existing leaseholder? If anyone here has ever owned a salon or is currently running one your input would be much appreciated

    Many thanks in advance
     
    Posted: Oct 17, 2020 By: SomethingWitty Member since: Jun 18, 2019
    #1
  2. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,965 1,945
    In standard terms, you pay a premium to take on the leashold, then you pay a quarterly (usually) rent

    In todays market I'd expect the premium to be nil and substantial rent-free period and/or major contributions towards fit-out

    Also take into account legal and professional costs and business rates
     
    Posted: Oct 17, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #2
  3. Strontium Dog

    Strontium Dog UKBF Regular Free Member

    410 78
    One thing to watch is directors are usually expected to provide a personal guarantee in respect of the rent, so if the business fails you will still be expected to find the rent.
     
    Posted: Oct 17, 2020 By: Strontium Dog Member since: Dec 2, 2008
    #3
  4. SomethingWitty

    SomethingWitty UKBF Newcomer Free Member

    16 0
    Thanks for replies. Could anyone recommend a good platform/website for finding such premises?
     
    Posted: Oct 17, 2020 By: SomethingWitty Member since: Jun 18, 2019
    #4
  5. Strontium Dog

    Strontium Dog UKBF Regular Free Member

    410 78
    Start with Rightmove and select commercial/shop salon etc
     
    Posted: Oct 17, 2020 By: Strontium Dog Member since: Dec 2, 2008
    #5