Starting your own business ?

whats the difference between buying a business freehold or leasehold, what are the drawbacks of leasehold, where should i look for a base for my business i.e a shop, can i buy an existing business premises and change it into another business . i.e turn a cafe into a florist, would i need to buy a freehold or leasehold to be able to do this or could i do it with both.


thanks for your answers in advance

Starting your own business ?
your first answer is a good answer.


With a freehold, if you decide to quit your business (ie shut it down or sell it), you can either sell the premises (or not) and move into something else.





If you are renting the premises, however, there are certain times (dates) within the lease (sometimes) when you can terminate your agreement - these are known as break clauses. Until those dates you will have to continue paying the rent whether your business is still running or not.





If you can afford to always buy the freehold rather than rent - unless you can get an extremely favourable rental contract which will allow you to opt out at short notice with minimum penalties.
Reply:buying existing biz = guaranteed of customer


startup new biz = cheaper
Reply:If you buy a freehold , the property is yours outright, but with a lease hold you are not the outright owner. If you are looking for a shop and wish to change the existing trading to something else, depending on what it is going to be ,you need permission from the local council for the change of trade.

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