My wife and I own a restaurant and we lease the building. Our landlord just inherited the building from his dad that just recently passed away and he really doesn't want to be a landlord. We are in a very small rural town and there are not any other options if we decide (or are forced) to leave.
Our landlord came to us last week and let us know that he wants to sell our building. Our lease is up for renewal and he was wanting to know if we would be interested in purchasing it. We said sure, how much are you thinking? He comes back with an asking price that is double the appraised value of the building. I asked why so high, and he said that a 'normal' person would only want to pay the appraised value, but since we have a revenue-producing business, we should pay more. His logic was that if we continue to lease at our current rate, we would pay more in 20 years' time versus just buying the building. I told him I am almost 50 and I am not sure I will be around in 20 years to realize the great savings that he is talking about.
Am I missing something? Should I pay more than the appraised value simply because my business is located in this building? He will eventually sell it to someone else, which is also a concern of ours. He put a clause in the new lease for a 60-day notice. Meaning if he gets the building under contract for sale, he (or the new owner) can give us a 60-day notice to vacate the building. Can we do anything now to protect ourselves from our next landlord?
Any and all advice is needed and certainly welcomed!
Thanks.
