Buying and Selling a Leasehold Business

Buying and selling leasehold businesses

19/05/2025

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Leasehold transactions can make business ownership more viable for prospective owners due to the lower capital investment needed to complete the purchase. Understanding what a leasehold business is, as well as the pros and cons of these deals, can help buyers make more informed decisions. Continue reading to learn more.

What is a leasehold business?

Buying a leasehold business means you own the company but not the property it currently operates within. As such, the price you pay is usually significantly less compared to buying a firm with premises included.

Because another person is the landlord of the building, part of the purchase agreement will involve agreeing to rental terms with them to continue using their property for your operations. You may take over the previous owner's lease or sign a new contract under terms you are happy with.

What are the pros and cons of buying a business leasehold?

Pros of leasehold businesses

  • Lower upfront costs
  • Reduced maintenance responsibilities
  • Flexibility and scalability
  • Simpler acquisition process
  • Access to prime locations
  • Predictable operational costs 

Cons of leasehold businesses

  • No property appreciation
  • Maintenance or service charges may need to be paid on top of rent
  • Lack of control and planning restrictions
  • Uncertainty when the lease expires
  • Legal documents can sometimes be complicated 

Buy or sell a leasehold business with us

We are pleased to sell businesses on a leasehold basis, so get in touch if you are interested in acquiring one. Our team will be able to shortlist several options that we believe match your instructions.

Likewise, we can also value and sell your business leasehold if required. We can do this confidentially to keep your best interests at heart.

Get in touch with Eddisons

Please contact us for more details and information

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