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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10409
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I am in the process of discussion with seller who wants to

Resolved Question:

I am in the process of discussion with seller who wants to sell his Resturant business for £30,000 and grant a new commercial lease.

Seller is the freeholder of his premise and the owner of his Resturant business which he runs from his freehold premise.

The seller has offered to grant a new 10 year lease with £10,000 rent year with no premium.

The seller is friend who wants cash payment and does want to involved Solictor.

Seller sale of condition is
once we pay him cash £30,000 we can take over the business and run it sort out the paperwork later.

I'm worried because I think he has something to hide or he is trying to scam.

What can we do protect ourselves.
What is the normal practice for sale of the business and grant of a new lease?.
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.

My name is XXXXX XXXXX am happy to assist you with your enquiry.

my advise is short and simple- don't hand over any money until you have agreed the terms of the Lease.

I take it that you meant to say he does NOT intend to use Solicitors, as opposed to he does want to involve a Solicitor.

The normal procedure on new Leases for business is that the parties agree the terms of the Lease (this will confirm who is responsible for maintaining the building/who pays the Buildings Insurance/ confirms when the rent will be reviewed (normally every 5 years). The Lease will also confirm that you have the right to use the premises as a restaurant).

Without any signed Lease, you have no security whatsoever, and the £30,000 should only be handed over on the date the Lease is signed.

You are correct that he may have something to hide if he doesn't want to involve Solicitors, and more importantly from your point of view, you would have nothing to prove you had paid him £30,000 in return for the business without a Lease being signed!

I hope this assists and answers your question.

Kind Regards
AL

Customer: replied 3 years ago.
What about on purchasing his business, do I need to do a separate transaction for purchase of his Resturant business.
If we sign a new lease, we won't be new owners of Resturant business
Expert:  Aston Lawyer replied 3 years ago.

Hi again,

Sorry- if you are taking on an existing business, you will also need to get a Contract drawn up "assigning the goodwill of the business" to you and it would also include an inventory of what stock is to be included in the Sale to you.

Kind Regards
AL
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10409
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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