UK Pub Leases: Running a Pub in Partnership with a Brewery or Pubco

A long-term pub lease is a longer-term partnership agreement which was introduced in the early 1990s and they tend to be offered on all types of pubs and hotels by UK breweries and pub companies.

Like pub tenancies, pub leassees are ‘tied’ and contract to buy a range of wet products (beers, ciders and sometimes wine and spirits) from the property landlord. The greater security of tenure on the business gives many lessees the confidence to invest effort and their own money (which can be from a commercial loan) and expand the pub business.

Some lessees enjoy annual sales approaching £1 million. As well as greater security of tenure, the lease on the business can be assigned (sold on) at market cost and the lessee may receive a substantial sum on leaving the business, thanks to their hard work and business skills. In return for these benefits, as well as rent which is regularly reviewed, lessees assume responsibility for the physical upkeep of the property and there may well be other conditions depending on the type of contract.

Although some people consider leases to offer advantages over pub tenancies for people wanting to invest and build wealth over the long-term, the conditions are more onerous than tenancies

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UK Freehouses: Running a Pub Independent of Breweries or Pub Companies

 

Freehouses are independent from brewers or pub companies and owned outright or on a mortgage by an individual and run either by the owner or a manager. They are usually free of tie and may buy their beers and other wet products from any source.

via paramount-investments.co.uk

Posted via email from UK Pubs For Sale And Development