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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a 7 year lease left on my garage business with the council.They

Customer Question

I have a 7 year lease left on my garage business with the council.They have approached me saying that a building company wants to build shelterd housing on my leased premises witch was a small petrol station before I got it decommishend.My profit after tax is £90000 profit approx last 3 years .been on this site for 25 years .What would I exspect the building firm to offer me to by me out for 7 year lease LEFT?
kind regards roy
Submitted: 4 years ago.
Category: Law
Expert:  Ash replied 4 years ago.

Alex Watts :

Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.

Alex Watts :

Is that gross or net? Can you prove the profit element please?

Alex Watts :

Are you able to respond?

Alex Watts :

Can I help?

JACUSTOMER-r0q3awcf- :

Hi, It is the Net profit. Yes I can provide the profit element

Alex Watts : Have you had a professional valuation yet please?
JACUSTOMER-r0q3awcf- :

Not had it valued yet but the previous valuation was £250,000. The garage is located in the town centre

Alex Watts : What you should do is get a proper valuation of the business and this is the starting point. Generally as a guide you would expect to be paid x1 turnover or x3 net profit as a guide.
Alex Watts : But get an up to date valuation from an accountant and this would be the starting point. Clearly you need to include goodwill etc.
Alex Watts : But x1 or x3 is the normal value.
Alex Watts : So based on what you have said it would be around £270,000
Alex Watts : Can I clarify anything for you about your question today? If not, can I invite you to rate my service which I hope has been excellent.If you need more help then please click reply. Thanks - Alex
JACUSTOMER-r0q3awcf- :

Hi, Thanks for the answer :-) Yeah i'll rate your service :-)

Alex Watts :

Thank you. You should see a series of buttons with happy faces that allow you to rate it formally - thank you.