Buying a Business? Why the Lease Deserves Your Attention 13

Published on July 31, 2026

When purchasing a business, it is easy to focus on the figures, equipment, customer base and future growth potential. However, for any business operating from leased premises, the lease is also a major part of what you are buying.

At Connolly Roberts, we specialise in the sale of businesses and commercial property across a broad range of sectors, including motels, hotels, pubs, management rights, caravan parks, childcare centres, retail businesses and commercial investments.

Across these industries, a well-structured lease can provide buyers with greater confidence, stronger operational security and a clearer understanding of the business opportunity.

The Lease Supports the Business

For many leasehold businesses, the premises are closely connected to the val ue and ongoing performance of the operation.

A motel relies on its location, room configuration and access. A hotel or pub depends on its trading position, facilities and licence conditions. A retail or hospitality business may have built its customer base around a particular site.

This is why buyers should consider the lease alongside the financial performance of the business.

Important lease details may include:

• The remaining lease term

• Further options available

• Current rent and outgoings

• Rent review arrangements

• Maintenance and repair obligations

• Permitted use of the premises

• Make-good requirements

• Assignment conditions

• Any lease variations or special agreements

Understanding these terms early helps a purchaser assess whether the lease supports their business plan and long-term goals.;

Security of Tenure Matters

Buyers are not only purchasing the income the business produces today. They are also investing in its ability to continue operating into the future.

A suitable remaining lease term, together with practical renewal options, can provide valuable security. It may also be important when arranging finance, as lenders will often consider whether the lease term aligns with the proposed loan period.

For buyers planning to improve, expand or reposition a business, the lease should provide enough time to implement those plans and achieve a return on the investment.

A shorter lease is not automatically a problem, but it may require further discussion with the landlord before the purchase proceeds

The Landlord Approval Process

Most commercial leases require the landlord’s consent before the lease can be transferred to a new business owner.

As part of this process, the landlord may request information about the purchaser’s:

• Business experience

• Financial position

• Assets and liabilities

• Proposed business structure

• Business plan

• Professional references

• Ability to meet the lease obligations

Buyers can help keep the process moving by preparing this information early.

This is particularly important for purchasers who are new to the industry. A clear business plan, appropriate funding and evidence of professional support can help demonstrate that the buyer is capable of operating the business successfully.

Review the Full Lease History

Purchasers should ask to review more than just the original lease document.

The complete lease history may include:

• Deeds of assignment

• Renewal or option documents

• Rent review notices

• Variations to the lease

• Agreements regarding repairs or improvements

• Records relating to outgoings

• Any relevant correspondence with the landlord

These documents can provide a more complete picture of the current lease arrangements and help avoid misunderstandings later in the transaction.

Match the Lease to Your Business Plan

Before purchasing a business, buyers should consider whether the lease allows them to operate the business as intended.

For example, a purchaser may want to extend trading hours, renovate guest rooms, introduce food service, add accommodation, change signage or expand into another part of the premises.

These plans may require landlord approval, council approval, planning permission or changes to the lease.

Identifying these matters early gives the buyer an opportunity to make informed decisions before committing to the purchase.

Good Preparation Creates a Smoother Purchase

A well-prepared buyer is often in a stronger position to complete the landlord approval, finance and due diligence processes efficiently.

At Connolly Roberts, we help purchasers understand the business opportunity, the lease arrangements and the information they may need to provide throughout the transaction.

The lease should not be viewed as something to fear. It is an important part of understanding the business, protecting your investment and planning for the future.

Frequently Asked Questions

Need Advice?

Buying a business involves more than reviewing the financial figures. Understanding the lease, landlord approval process and long-term security of the premises can help you make a more informed decision.

Speak with the experienced team at Connolly Roberts for assistance with buying a business, leasehold opportunity, buying a business or investment asset.