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As
is common in the UK both freehold and leasehold business premises
are available. However, most are leasehold and leases can vary
in duration from five year to lifetime. Increasingly becoming
most popular are five year renewable leases, which means that
the Landlord has to offer you a subsequent term at no extra charge
other than it will enable him to increase the rent by the cost
of living (see below). It is therefore essential that a renewable
clause is contained within your lease and your Abogado will ensure
that this is the case.
When
you are offered details of a business with an assignable lease
the current rental will generally be listed. It is normal for
the lease to allow the Landlord to increase the rental upon transfer;
sometimes by up to 15% of the current rental, again your Abogado
will advise you and will negotiate on your behalf with the Landlord.
Once the future rental has been agreed this can only increase
annually in line with the cost of living (set by the Spanish Governments
Statistical Bureau) and is currently around 2% per annum.
The
Abogado will ensure that the Lease enables you the right to sell-on
the premises at a later date along with all the fixtures, fittings
and equipment of the business. The Landlord has the right to retain
a proportion of any monies received for the lease of the business
upon transfer, usually around 15%, but again this must be contained
within the terms of the lease and again your Abogado will advise
you. For leasehold business's it is normal for the purchaser to
pay the Landlord a deposit bond, which is equivalent to two months
rent in addition to one month's rent in advance.
Freehold
properties are always harder to find and of course more expensive
than leasehold. Freehold properties are much the same as in England
and can be mortgaged with most of the Spanish banks. Expect to
be able to borrow 50-60% of valuation for business premises, and
around 80% of valuation on residential properties. Also bear in
mind that various taxes apply when purchasing a freehold property
and you can allow approximately 8% of the declared purchase price
to be payable in taxes.
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