About Freehold Going Concerns
Investment in freehold going concerns (FHGC) provides the purchaser with ultimate flexibility. Owning both the real estate and the business that operates within, the purchaser may exercise several choices over the term of ownership.
- Own the property and operate the business thereby maximising the yield available from your investment. As time goes by circumstances may change and therefore many purchasers of FHGC choose to offer the leasehold business for sale, retaining the land and buildings as a sound long-term investment. For this reason it is advisable to seek good advice from professionals who understand the implications of these decisions. It is important to ensure the purchase is structured in a way that not only maximises your return on investment, but also avoids unnecessary legal and tax implications.
- If the purchaser has no desire to operate the business, the purchase of a FHGC provides an opportunity to onsell the leasehold on terms and conditions to suit. This leaves the purchaser with an excellent land and buildings investment.
- The purchaser of the FHGC may take the opportunity to upgrade, renovate or redevelop a tourism property and in doing so, add real value before looking at the next option; which may be either to operate the business, onsell the leasehold business or place the property back on the market to achieve good capital gain.
- Provide for family either immediately or in the long term having both sound land and buildings investments and a business opportunity for others that one can take an active interest in.
