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Mark Rogerson- Managing Director, Rogerson Kenny Business Accountants

When buying a business, across any industry, you will come across these terms “Leasehold” and “Freehold Going Concern”. This article looks at what is a Leasehold and what is a Freehold Going Concern. 

Leasehold

A leasehold is also termed as “buying the business”, without the land and buildings. 

With a leasehold you are buying:

  • A lease which gives you the right to occupy land and the use of the buildings on that land 
  • The plant and equipment, fixtures and fittings that are required to operate the business; and 
  • The goodwill of the business 

When you are looking at buying a leasehold, you are buying the business, with plant and equipment, fixtures and fittings and goodwill to operate the business and taking over a lease with the right to occupy and operate that business on land. 

Freehold Going Concern

A Freehold Going Concern is the freehold property (including buildings) and the business operating on that property. The same party would own the land and buildings and operate the business.

With a Freehold Going Concern, you are buying:

  • The freehold land and buildings 
  • The business – which would include plant and equipment, fixtures and fittings and goodwill (which usually includes phone numbers, customer lists, IP, etc)