Takeaway for sale with no A5 licence...

[cindycs74]

Hi there,

I recently saw a business for sale - a Chinese takeaway - which has been trading as such for about 40 years. Apparently it was the first in the town. But when I asked the vendor about the building use, she told me that it does not hold either A3 or A5 use classification. She said her solicitor did a "survey" from the council and that the council has allowed a t/a to run from these premises for 40 years so this does not pose a problem. She said she bought special insurance to cover this situation.

Does anyone have any information or suggestions on this type of thing? I am very interested in buying this business but feel nervous about its lack of A5.

Thanks so much for your time.

 

[Choice]

I would be nervous about it too. My luck would be that just because it had traded for 40 years without the correct consent, they would come down on me like a tonne of bricks!
If i was you i would be ringing the council directly and asking them outright if it has A5 consent and if not, would they grant it. Good luck.

 

[cindycs74]

Is this even in the right forum section?

 

[Socio South West]

Even if they did 'come down on you like a ton of bricks' , provided the use is unbroken, and can be proved by dates, sworn statements and other evidence you should have no problem getting a Certificate of Lawful Use (CLUED) which protects you from any enforcement by Planning Authorities as long as the use is maintained. (note - it is not the same as Planning Permission.... That could be refused, but as long as you clearly demonstrate continuous use, a CLEUD cannot be refused, and is a safer bet than Planning Permission)
More details here... http://www.keithfarmer.co.uk/planning-development/lawful-development-certificates-guidance
This is what the owner may already have, but from your wording it sounds more like an Indemnity Insurance, which more usually covers a contravention of other existing clauses and covenants. Possibly in this case there is a clause in the deeds saying it may not be used as a restaurant, but the owner has been using it as such, and this policy indemnifies you from any costs arising should this archaic clause be enforced by anyone.
It needn't be a deal breaker as long as your solicitor understands Planning and Property law... an ordinary family solicitor is not the one to be approaching for this type of work.

 

[Moneyman]

You would be right to be worried but after 40 years it is extremely unlikely the council will stop you. That said councils might be happy to make your life a misery just to tick a box. definitely talk to them and put in a change of use application. with a bit of luck it could be done and dusted in a month. but never ever presume a council will do the obvious. you could do this while the sales negotiation is underway.

 

[cindycs74]

Thanks so much for the info. Some great insight here.