Buying a let shop or convenience store: 10 checks before you make an offer

By Kunal Mishra, founder of YieldBellPublished 18 October 2026 · Last checked 18 October 2026

A shop let to a well-known name can look like simple income. The brochure is written for the seller, though. The details that decide the value are in the lease, the tenant's accounts and the title.

Good freehold stock is scarce. Christie & Co says "competition for quality freehold opportunities remains strong due to the scarcity of available stock" (Christie & Co Retail Market Review 2026). It also recorded a 26% rise in offers on retail businesses in the first half of 2026 (Christie & Co, 16 September 2026). That pressure makes it tempting to rush. Most of these 10 checks cost little or nothing, and they can save you from an expensive mistake.

1. Find out who the tenant really is

The sign over the door is not the tenant. The tenant is the company named in the lease. A shop branded as a national chain may be let to a small franchise company, or to a subsidiary with few assets.

Ask for the lease and note the exact company name and number. Then look it up on Companies House. It is free. You can see the company's officers, filed documents, mortgage charges and any insolvency notices (GOV.UK).

Read the last 2 or 3 years of accounts. Look at profit, net assets and whether the accounts are late. Ask whether a parent company or a director has given a guarantee.

2. Check how long the income lasts

Look at the lease end date and any break dates. A break lets the tenant leave early. The "term certain" is the time until the first date the tenant can go.

The market prices this in. In the first quarter of 2026, auction lots with less than 5 years left sold at an average yield of 9.69%. Lots with more than 10 years left averaged 7.86% (Acuitus cPad, Q1 2026). Allsop notes the same in drive-thrus: buyer appetite "markedly drops for units with less than 10 years term certain" (Allsop).

A short lease is not always bad. But it should come at a price that reflects the risk of an empty shop.

3. Read the repairing terms

On a full repairing and insuring (FRI) lease, the tenant pays for repairs and the cost of insuring the building. On an internal repairing lease, you pay for the roof, walls and structure.

Check for a schedule of condition. This limits the tenant's repair duty to the state the building was in when the lease began. If there is one, the tenant may hand back a building in poor shape and owe you little.

If the shop is part of a larger building, check how the service charge works and what is excluded.

4. Understand the rent reviews

Find out when the rent can change and how. The main types are:

• Open market review. Rent is reset to what the market would pay. Many older leases are "upward only", so the rent cannot fall at a review.
• Index-linked review. Rent rises with RPI or CPI. Look for a cap (the most it can rise) and a collar (the least).
• Fixed uplifts. Rent rises by a set amount on set dates.

Index links matter to buyers. At Allsop's October 2026 auction, a freehold convenience store with 15 years of uncapped RPI-linked increases sold for £1.4 million at a 6.7% yield (Property Reporter, 13 October 2026).

Since 1 September 2020, RICS members dealing with new business leases in England and Wales must follow the mandatory parts of the RICS Code for Leasing Business Premises (Freeths).

5. Ask whether the rent is affordable for the tenant

A rent that is too high for the trade is a risk at the next lease end. Compare the rent per square foot with similar shops nearby. Ask the agent for local lettings evidence.

Business rates also affect what a tenant can pay. From 1 April 2026, England has new, lower multipliers for smaller retail, hospitality and leisure properties, which replaced the old retail relief (GOV.UK analysis). Look up the shop's rateable value and ask the tenant's agent how the 2026 revaluation changed the bill.

6. Check security of tenure

In England and Wales, many business tenants have a legal right to renew their lease under Part II of the Landlord and Tenant Act 1954 (legislation.gov.uk). Some leases are "contracted out" of this right.

A protected tenant is more likely to stay, which suits an income buyer. An unprotected lease gives you more freedom when it ends. Your solicitor will confirm which one you are buying.

7. Check the EPC and the energy rules

In England and Wales, it has been unlawful since 1 April 2023 to keep letting most non-domestic property rated below EPC E, unless the landlord has registered an exemption (GOV.UK). Look up the certificate on the national register and note its expiry date.

Two points catch buyers out:

• Exemptions do not pass to you. GOV.UK says that if a let property is sold, the exemption stops, and the new owner must improve the property or register a new exemption.
• The rules are changing. In June 2026 the government said rented buildings over 1,000 square metres should reach EPC B by 2031, where cost-effective. Buildings under 1,000 square metres stay at EPC E for now (GOV.UK interim response). Most convenience stores are well under 1,000 square metres, but check the floor area.

8. Sort out VAT early

If the seller has opted to tax the building, VAT at 20% may be added to the price. A let property can often be sold as a "transfer of a going concern" (TOGC), where no VAT is charged. HMRC's conditions include that the buyer is VAT-registered, opts to tax and tells HMRC in writing no later than the "relevant date" (HMRC VAT Notice 700/9). Miss a step and you could face a large VAT bill, plus stamp duty on the VAT.

Ask the agent at the start: "Is the property elected for VAT, and is this being sold as a TOGC?"

9. Read the title

In England and Wales you can download the title register and title plan from HM Land Registry for £7 each (GOV.UK). Check:

• who owns it and whether the seller matches;
• mortgages and restrictions;
• rights of way, shared access and parking;
• whether a flat above has been sold off on a long lease.

For pension buyers: a SIPP or SSAS generally cannot hold residential property. HMRC allows some exceptions, such as a flat occupied by a tenant who runs a business from the shop below and is not connected to the member (HMRC PTM125200). Your scheme administrator will decide if a building is acceptable. Ask them before you offer.

10. Get a survey and talk to your solicitor

Documents will not show you the state of the building. A survey will flag roof, damp and structure problems that an FRI tenant may push back on. Your solicitor will read the lease in full, raise enquiries and check planning use.

At auction, the legal pack is usually online before the sale. Once the hammer falls, you are committed. Do these checks first.

Before you offer

If you cannot explain who pays the rent, until when, for what repairs and on what terms, you are not ready to offer. Values can fall as well as rise, and a long lease to a strong tenant is not a guarantee of income.

You can test the numbers on any listing with our yield calculator. If you would like YieldBell to email you the day a let shop that fits your brief is listed, book a 30-minute call to tell us what you look for.