We want to help you with your business purchase, so here are some frequently used terms, expressions & explanations

Stock at value – all the prices of the businesses we have listed are plus stock at value. The stock is the goods purchased to resell, for example, a general store would purchase its stock & fill the shelves with items for sale. When a sale is due for completion, a stock take needs to be carried out & the purchaser will buy the stock at cost price on the date of completion.

Fixtures & Fittings – all prices for the businesses we have listed include fixtures & fittings (unless otherwise stated) an inventory of the included fixtures & fittings will be available prior to purchase.

Freehold or Leasehold – if you purchase the freehold, you own the property with no rent payable for the building. If you buy the leasehold, you will take an assignment of an existing lease or sign a new lease, thereafter paying the agreed rent for the property.

Lease – A lease is a legally binding contract between a tenant and a landlord and gives you the right to operate your business from the property. If you take over a lease of a premises, there are two documents, an Assignment and a Licence. The Assignment is the transfer of the lease from one tenant to another and a Licence is to allow the assignment to go ahead. If you sign a new lease, the lease is normally between 6 years and 21 years, the longer the lease the greater value your business usually has.

Rent Reviews – During a lease term, the premises will be subject to rent reviews. The landlords will review the rent and compare the current local rental values to the property you occupy before evaluating the new rent.

UK Commercial Property Use Classes – Updated Planning Categories

In September 2020, significant changes were made to the UK Planning Use Classes Order. The former A-Class categories (A1, A2, A3) were abolished and replaced by a broader, more flexible Class E – Commercial, Business and Service. Meanwhile, former A4 and A5 uses are now classified as Sui Generis, meaning they do not fall within any standard use class and require specific planning permission for change of use.

The updated categories most relevant to shops, restaurants, cafés, takeaways and other high-street premises are set out below.

Class E – Commercial, Business and Service

(Replaces former A1, A2 and A3 use classes)

Class E offers greater flexibility by allowing a wide range of commercial activities to operate interchangeably without requiring planning permission. It encompasses three main sub-categories:

• E(a) – Shops (Former A1)
  Typical uses include:
  • Retail shops & retail warehouses
  • Post offices
  • Showrooms
  • Sandwich bars (cold food), coffee counters
  • Domestic hire shops
  • Internet cafés
  • Hairdressers & dry cleaners
  • Ticket & travel agencies
• E(b) – Food & Drink (Former A3)
  Premises where food and drink are consumed on the premises, including:
  • Restaurants
  • Cafés
  • Snack bars
• E(c) – Professional & Financial Services (Former A2)
  Businesses providing services to visiting members of the public, such as:
  • Banks & building societies
  • Financial services
  • Estate & employment agencies
  • Professional services (non-medical)

Sui Generis Uses (Former A4 and A5)

Some uses no longer fit within a standard class. The former A4 and A5 categories now fall under Sui Generis, meaning planning permission is generally required for change to or from these uses.

• Drinking Establishments (Former A4)
  • Public houses (pubs)
  • Wine bars
  • Other drinking establishments
• Hot Food Takeaways (Former A5)
  • Premises selling hot food for consumption off the premises

Summary Overview

This updated system allows many premises to change between uses within Class E without requiring a planning application, offering far greater flexibility for high-street businesses.

EPC’s – Energy Performance Certificates are needed for marketing a business or commercial property for sale click here for information of EPC’s