Ever thought about running your own pub?
     
 

Manager, Tenant or Lessee?

If you are thinking about running a pub, you need to consider which role would you suit you best. The table below examines the options.

Questions Freehold Leasehold Tenancy
What is the difference? You buy the building and business outright You pay for the business, fixtures and fittings and rent the building You buy the fixtures and fittings and rent the building
Am I tied to a Brewer or Pub Co? You own the business, you trade as you wish You will normally be tied to a Brewery for beer, cider and alcopops, the rest is down to you. You will normally be tied for all drink supplies and work with the Pub Co to develop the business
Do I need experience? Not essential but lenders like to see some business knowledge Not essential as most Pub Cos have compulsory training courses Many Pub Cos have their own courses and many tenants are "first timers"
Do I need any qualifications? Not normally essential but useful to have the BII (British Institute of Innkeeping) and Health and Hygiene Certificates which you would gain on most training courses Not normally essential but useful to have the BII (British Institute of Innkeeping) and Health and Hygiene Certificates which you would gain on most training courses Not normally essential but useful to have the BII (British Institute of Innkeeping) and Health and Hygiene Certificates which you would gain on most training courses
Can I borrow money? Generally up to 70% of the purchase price, see our Funding Section Possibly on well traded operations or if other security is offered then up to 50% loan could be available No. Possibly overdraft type facility. Tenancies are available for as little as £15,000
How do I get a Licence? Normally you will apply for a licence/protection order some 2/3 weeks before you take over. Your Solicitor will advise on how to go about this. You will need to have taken a course to confirm your knowledge of the licensing law, the National Licensees Certificate. Normally you will apply for a licence/protection order some 2/3 weeks before you take over. Your Solicitor will advise on how to go about this. You will need to have taken a course to confirm your knowledge of the licensing law, the National Licensees Certificate. Normally you will apply for a licence/protection order some 2/3 weeks before you take over. Your Solicitor will advise on how to go about this. You will need to have taken a course to confirm your knowledge of the licensing law, the National Licensees Certificate.
What am I buying? The price is a mix of property and business value The premium is for fixtures and fittings, existing trade goodwill and value of the lease. You are buying the fixtures and fittings. The figure is agreed by your Valuer.
What is the Rent and Review date for? You don't pay rent You rent the building. Most rents are reviewed at regular intervals, maybe 3 or 5 years. There could be annual RPI increases. The rent is re-negotiated at the end of the term or at regular intervals, maybe 3 or 5 years.
Who looks after the property? The property is entirely your responsibility. Your lease will normally make you responsible for all repairs and decoration. Normally you are only responsible for interior repair and decoration.
Are there any other costs to pay? Stock is bought on the day of take-over. Other costs may be Solicitors, Licenses, Stocktaker, Stamp Duty and in some cases VAT. Probably rent in advance or security deposit as well as stock on the day. Plus Solicitor, Stock-takers, Licenses and if applicable Stamp Duty. The "Ingoing" quoted normally includes an estimate of stock and takes into account Brokers fees, working capital and security deposit.
 
  • Arkell's Arkell's
  • Batemans Batemans
  • Black Sheep Black Sheep
  • Brakspear Brakspear
  • Charles Wells Charles Wells
  • Bathams Bathams
  • Thwaites Thwaites
  • Donnington Donnington
  • Everards Everards
  • Robinsons Robinsons
  • Fullers Fullers
  • Hall & Woodhouse Hall & Woodhouse
  • Harveys Harveys
  • Holdens Holdens
  • Hook Norton Hook Norton
  • Elgoods Hook Norton
  • Hydes Hook Norton
  • Holts Hook Norton
  • JW Lees JW Lees
  • McMullen McMullen
  • Palmers Palmers
  • brains brains
  • Shepherd Neame Shepherd Neame
  • St Austall St Austall
  • theakston theakston
  • timothy-tailor timothy-tailor
  • wadworths wadworths
  • youngs youngs