You can, but a short lease is the most common reason salons sell for less than the owner hoped. Buyers and their lenders want to know they can stay long enough to earn back what they pay.
A buyer paying for goodwill needs time to earn it back. With two years left on a lease, they are paying for clients and profit they may only enjoy for two years, so they either offer less or walk away. Lenders take the same view and rarely lend against a lease shorter than the loan.
Security of tenure helps
Many business leases in England and Wales are protected by the Landlord and Tenant Act 1954, which gives the tenant a right to a new lease when the old one ends unless the landlord has a specific reason to refuse. If your lease is protected, tell buyers, because it changes how they see a short term. If it was contracted out of the Act, they will see that in the lease too.
What to do before you list
- Ask your landlord about a new lease or an extension. A new ten-year lease can add more to your price than anything else you could do.
- If a new lease is not possible yet, get a letter from the landlord saying they are willing to grant one to a suitable buyer.
- Know your rent review dates and any break clauses, because buyers will ask.