Buying and selling a business can be a very complicated process, luckily Bradleys Countrywide are here to help you through every stage of the process.
Below are some of the most frequently asked questions, if your question is not answered below, or you require any further information, please do not hesitate to contact us.
SAV is Stock at Valuation. Most businesses will carry and store a certain amount of stock to enable them to trade so they can offer a service to their customers. The stock is normally in addition to the asking price or premium.
Freehold: is when you buy the property and the land that it stands on, plus the value of the business, goodwill, fixtures and fittings if applicable.
Leasehold: is when you have an agreement with the landlord of the property for a fixed term, which results in you paying a rent over that term, plus the value of the business, goodwill, fixtures and fittings if applicable.
Virtual Freehold: is when you buy the property, but not the land that it stands on, plus the value of the business, goodwill, fixtures and fittings if applicable.
FRI means Fully Repairing and Insuring. This refers to a leasehold property and means that the tenant is responsible for the repairs and maintenance at the property, as well as being liable to reimburse the landlord for their proportion of the building’s insurance.
Local authorities grant permitted use designations to premises in their area, below is a list of the most common uses you will come across.
- A1 - Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops, dry cleaners, funeral directors and internet cafes.
- A2 - Financial services such as banks and building societies, professional services (other than health and medical services) and including estate and employment agencies. It does not include betting offices or pay day loan shops - these are now classed as "sui generis" uses (see below).
- A3 - For the sale and consumption of hot food on the premises including restaurants and cafes.
- A4 - Drinking establishments including Public houses, wine bars or other drinking establishments including establishments with expanded food provision.
- A5 - Hot food takeaways with the sale of hot food for consumption off the premises
- B1 – Business, for Offices (other than those that fall within A2), research and development of products and processes, light industry appropriate in a residential area.
- B2 - General industrial, use for industrial process other than one falling within class B1 (excluding incineration purposes, chemical treatment or landfill or hazardous waste).
- B8 - Storage or distribution which includes open air storage.
- C1 - Hotels, boarding and guest houses where no significant element of care is provided (excludes hostels).
- C2 - Residential institutions including care homes, hospitals, nursing homes, boarding schools, residential colleges and training centres.
- C2A - Secure Residential Institution, including use as a prison, young offenders' institution, detention centre, secure training centre, custody centre, short term holding centre, secure hospital, secure local authority accommodation or use as a military barracks.
- C3 - Dwelling houses
- C4 - Houses in multiple occupation, including small shared houses occupied by between three and six unrelated individuals, as their only or main residence, who share basic amenities such as a kitchen or bathroom.
- D1 - Non-residential institutions including Clinics, health centres, crèches, day nurseries, day centres, schools, art galleries (other than for sale or hire), museums, libraries, halls, places of worship, church halls, law court. Non-residential education and training centres.
- D2 - Assembly and leisure including cinemas, music and concert halls, bingo and dance halls (but not night clubs), swimming baths, skating rinks, gymnasiums or area for indoor or outdoor sports and recreations (except for motor sports, or where firearms are used).
Sui Generis - Certain uses do not fall within any other use class and are considered 'sui generis'. Such uses include betting offices/shops, pay day loan shops, theatres, larger houses in multiple occupation, hostels providing no significant element of care, scrap yards. Petrol filling stations and shops selling and/or displaying motor vehicles. Retail warehouse clubs, nightclubs, launderettes, taxi businesses and casinos.
There are three ways that a landlord can reasonably object to a renewal of a lease, they are as follows:
- The landlord wants the property for his/her occupation.
- The landlord wants the property back for re-development purposes.
- The tenant is in rent arrears or in breach of lease by not conforming with the lease terms.
This stands for Per Annum Exclusive, which means that the rent is exclusive of other outgoings i.e. gas, electric, water etc.
Gross Profit is the profit on the turnover, after the stock has been paid for, so Turnover minus Stock Purchases = Gross Profit.
Net Profit is the profit after all other expenditures (rent, rates, wages, utilities etc) have been deducted from the gross profit, so Gross Profit minus Expenditure = Net Profit.
The VAT threshold for 2018/19 & 2019/20 tax years is £85,000. This means that if your business is turning over this amount or more, you legally should be VAT registered.
Please see the buying guide section of our website, you will find this.
Please see the selling guide section of our website, you will find this
Yes, the service we offer is free to buyers! We have experienced and professional staff who will be able to assist you from the very start right up until the day of completion. Our staff will answer any questions in an easy to understand manner, but also give you professional advice when required.
Bradleys Countrywide can aid you in commercial finance by pointing you in the direction of trustworthy brokers or bank contacts who can often put together a financial package to suit you. We understand that getting finance can sometimes be a struggle, but please do not hesitate to contact us, we may have the right person or company to help you! For further information, please see our Finance Section under Useful Links of our website.
Unfortunately not, it’s Bradleys Countrywide’s policy that once a purchaser has paid a deposit, the business is marked under offer and secured as theirs. However, we welcome applicants registering their interest in the business with us in case the purchaser unexpectantly withdraws from the transaction, then we can contact you immediately before it goes back on general sale.