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I rent an old 1930's built workshop for my business, it's quite big at 180m2 floor area, brick walls, crappy cement fibre roof, B1 / B2 business use I believe. Set back off a town centre road with 3 parking spots. Current rent is inclusive of all bills. My landlord might be retiring and downsizing his lot soon. He pays the rates and still stores some of his stuff in one bit of it. I'd like to approach him to buy it if feasible but not sure where to start for advice on how to make a fair offer as no idea of it's value. There isn't really anything locally with a freehold for sale to compare with past or present. I'd like to get a figure in mind first to discuss and negotiate presuming he'll come up with his own figure. Estate Agent, RICS member, local council valuation office for advice? Any tips where to begin appreciated. Cheers
Two values I use would be it's commercial value, basically a multiplier of the rent or its development value.
For the commercial value then somewhere around 10-20 times annual rent. Not necessarily what you are paying but what it's actually worth, even parking spaces have a good rental in some areas.
Development value tends to be higher. Can you get some kind of residential buildings on there, either converting what's there or knocking it down. Depends on size, location and access.
It's all a bit finger in the air though. There are loads of factors to consider, but it's a start