Buying a Business: The difference between a Leasehold and Freehold Going Concern

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) 

Contact

Suite 13, 241 Blackburn Road Mount Waverley VIC 3149

Phone: (03) 9802 2533

Fax: (03) 9802 0590

Postal Address: PO Box 323, Mount Waverley, Victoria 3149

Email: mail@rogersonkenny.com.au

ABN: 29 545 604 022