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Buying a leasehold
bar in Spain is a good way of acquiring a business
without the massive outlay of a freehold. A lease
in Spain is called a ‘Trespaso’.
Purchase price
The price quoted is for a new lease at the terms
stated in that lease. You will normally pay this
in one lump sum on signing over of the new lease.
It is normal practice to secure a sale in the
first instance with a 10% deposit. This deposit is
non-returnable unless the sale falls through
because of the seller. If you simply change your
mind, you will lose your deposit.
Length of lease
This will be clearly stated in all publicity
advertising the business and will be written into
the lease agreement. The normal is 5,10,15 or 20
years. Sometimes an endless lease is offered.
You have an automatic right to renewal of the
lease providing you pay the rent on time and keep
within the terms of the lease.
During the lease
• You will pay the agreed rent on a monthly basis.
• You can run the business in accordance with the
terms of the lease (ie as a bar).
• You can alter the theme of the bar, the décor,
the furniture etc but you cannot, without the
landlord’s permission, alter the structure of the
premises.
• You will be responsible for the electricity,
water, community charges etc
• Your landlord is responsible for external
repairs and major structural work
• The rent will increase by the rate of inflation
each year
• On renewal of the lease the rent will be
increased (usually 20%)
Selling the lease
At any point you can sell the lease, at whatever
price you want. You will normally have to pay your
landlord a commission on the sale of 10-20%. A new
buyer will be responsible for any costs involved
in the sale.
Security issues
• You may be required to insure the property
• You will need to give your landlord a security
deposit of 2 months rent. This is returned to you
when you leave, providing the premises are in good
condition
• You will also need to pay your rent one month in
advance
Disputes
Your lease is a legal contract and is governed by
Spanish law. If you have a disagreement with your
landlord, either party can take legal action in
the local court.
You have rights as a tenant and your landlord has
rights to protect his property.
This is the way Sol Commercials does business
1. Once you have found the right business, you pay
a 10% deposit to secure the purchase. This deposit
is placed in a client account; We do not give it
to the seller at this point in case there is a
problem with the sale and we have to return it to
you.
2. We prepare an option contract which usually
lasts 30 days but can sometimes be longer, if
required. This means that you have 30 days in
which to pay the balance.
3. During the term of this contract, the seller
cannot increase the price, nor offer the business
to anyone else.
4. During the term of this contract, your
appointed legal advisor will check the licence of
the business and check there are no outstanding
debts.
5. On the set completion date, all monies are
transferred to the seller, in front of your legal
advisor. You get the keys and your new lease is
signed by the landlord.
Important Notes
• If the seller pulls out of the sale for any
reason, or it transpires that the business is not
100% correct, your deposit can be returned to you
or used against another purchase.
• If you pull out of the sale because you have
changed your mind or cannot raise the balance of
the funds, you will forfeit your deposit.
• If it transpires that there are outstanding
debts on the business, these will be paid by the
seller.
Frequently Asked Questions:
If I buy a lease how long will it run for?
It will vary but it will be set out in the
contract. The normal is 5-10-15 or 20 years
What happens at the end of the lease?
You renew it with your landlord. He can increase
the rent at this point
How much will the rent rise by each year?
The rent will rise by the rate of inflation every
year. At renewal, the landlord will increase it by
10-20%
Can I alter the inside of the bar?
Yes but not the structure. You can redecorate or
refurnish
Can I sell the lease?
Yes, at any point for whatever price you like.
However, you will have to pay a commission to the
owner and an agency fee to the estate agent (us)
How old do I have to be?
You have to be 18 years of age
Am I going to lose all my money?
No, providing that you have bought the right bar –
that is our job to advise you, and providing that
you maintain a good business; buy well and you
will have no trouble selling again
What about licences?
You do not need a licence to own a business but
the premises must be licenced. We check all that
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