Table of Contents
What three questions would you ask before purchasing a pub?
45 Questions to ask a Pub Company
- How long has your business been going?
- How long has the rent model you are offering been in operation for?
- How experienced is the team running it?
- What is your financial investment in the business?
- Who owns the intellectual property?
How does a leasehold pub work?
However, unlike a tenancy, you do have the option to sell on the goodwill of the business – so if you build a very successful pub, you could potentially sell the business in the future and achieve a good return on your investment. Typically, a long-term agreement of ten years plus.
How do I buy a leasehold pub?
Key steps to buying or selling a leasehold pub
- Step 1: agree the terms of the deal When entering into negotiations to buy a lease, be aware of what is included in the sale.
- Step 2: get yourself organised
- Step 3: landlord’s consent — licence to assign
What to know about buying a pub?
5 things to consider when buying a pub
- Freehold or Leasehold. This is normally the first consideration for any property purchase, and licensed premises are no different.
- Licences.
- Employees.
- Stock, Fixtures and Fittings.
- Tax and Finances.
What do I need to own a pub?
How to run a pub – step-by-step
- Choose between freehold, leasehold, and tenancy. There are three ways in which you might run a pub.
- Get trained. If you’re running a pub for the first time, you might need some training.
- Think about legal compliance.
- Recruit staff.
- Think about stock.
- Develop your business.
Do you pay rent in a leasehold pub?
Buying a pub lease A leasehold agreement is a longer term commitment (typically 10 to 25 years) during which time you commit to paying the landlord rent, which may be reviewed periodically (typically every 3 or 5 years).
What is free of tie lease?
The “beer tie” is a centuries-old concept where large pub companies lease their pubs to tenants. When a tenant goes free of tie, they continue to rent the pub from the landlord but under a new, renegotiated ‘market rent only’ (MRO) lease. MRO tenants are free to buy their beer from wherever they choose.
Can you be evicted from a leasehold property?
If a leaseholder breaks a lease condition (or covenant), a freeholder can go to court to evict the leaseholder and end the lease. This is a process called forfeiture.