
Pub Leases, Tenancies & Freeholds explained
There are a number of different types of arrangement under which you can purchase your dream pub and the purchase prices will vary accordingly:
The traditional Pub Tenancy Agreement
An ideal starter for newcomers to the industry. Usually this will be a 3 or 5 year tenancy agreement which is contracted outside of the Landlord and Tenant Act. (meaning that the term is fixed for 3 or 5 years and no longer). Key facts:
- An ideal opportunity to get started with your first pub
- Cost of acquiring a 3 or 5 year tenancy will be between* £10,000 and £40,000
- You acquire and own the fixtures and fittings , stock and glassware
- Pub will be owned by the brewery or property company
- Partial repair obligations (a 'put and keep' tenancy)
- you pay a monthly rent and purchase products from a nominated supplier
* average guide figures only, some tenancies may be outside this range.
The Pub Lease
This type of purchase is more suited to a more experienced pub operator, or people with good business knowledge and awareness. This can be a 10, 15, 20 or 25 year commercial and assignable lease (in other words it can be sold for its business worth as well as the fixtures and fittings and stock) :
- Price ranges form £10,000 up to and beyond £250,000
- Commercially assignable and a return on investment can be achieved.
- Repairs and Insuring is entirely the responsibility of the lessee
- For the more experienced or commercially aware operator
- You pay a monthly rent and purchase products from a nominated supplier
Freehold Pub
In this scenario you will buy and own the pub, lock stock and .. Yes barrel!
- Prices range from £100,000 (in some areas) up to millions
- You can source and buy all saleable products wherever you choose
- You own the freehold of the property as well as the business
- The ultimate for the pub owner
- Considerable profits can be made form a future sale of a successful business
Alongside each of our advertised property's, you will be able see which category or option is available i.e. tenancy, lease or freehold. In some cases more than one option may be available i.e. tenancy or lease / lease or freehold.
For further information, check out Q's & A's page. Or contact us via out Contact page
