Licensed Property News: 2012 could be a good year to buy a pub
By: Paramount-Magazine Published Date: 14 Feb 2012 17:13
This year looks like being a good time to invest in the pub trade.
Despite stories of doom and gloom, a survey conducted by business advisory firm Zolfo Cooper shows that the number of people visiting public houses is on the up.
On average Brits visit the pub 4.6 times a month. This is up from 4.3 per cent per month since last summer and significantly higher than in 2010.
However, the research shows that the average person is spending a little less on each visit, not that it really matters to landlords when they are calling in more often.
Similarly, UK restaurants and night clubs are reporting that while spending has slightly decreased the number of visits has risen.
Paul Hemming, partner of corporate advisory services at Zolfo Cooper, said: “Consumers now recognise that they still afford to go out regularly and enjoy themselves, provided they spend a bit less on each night out.”
Pete Brown of the Publican’s Morning Advertiser recently pointed out that 2011 was actually a very good year for the licensed trade despite stories to the contrary.
23 Feb 2012
Licensed Property News: 2012 could be a good year to buy a pub
29 Jun 2011
Guide to Buying a Pub
Over the last few years more and more people are choosing to convert former public houses into private residential dwellings.Steve Oliver of London estate agents Paramount Properties has been selling pubs for alternate use for the last 8 years and gives a quick guide on buying a pub.
Planners: A good starting point is the local planners they will be able to give you their opinion on the feasibility of your plans
Local amenity: Is the property the only pub in the village? Although not impossible it will be harder to get planning permission if it's the last pub in village, planners like to have a least one pub in the area.
Precedent: Has a similar property already been converted? If yes then this will help your case also.
Listed: Find out if the pub is listed by English Heritage. Properties of importance are listed from Grade I to Grade II. Being listed wouldn't be a reason to stop the pub from being converted but may limit what you can do to it.
Change of use: A public house is classed as A4 use, to convert a pub into a house you will need to submit a planning application for a "change of use" from A4 to C3
Unconditional: Most Pubco's will only sell their pubs on an 'unconditional' basis, that is, you agree a price whether or not planning for a change of use is in place.
Finance: Getting a mortgage on a commercial property can be a minefield and time consuming, so you will need to speak to a specialist lender.
VAT: Most pubs attract VAT (value added tax) on top of the purchase as well as stamp duty, if VAT is applicable you may be able to avoid paying VAT altogether as VAT isn't charged on residential properties be serving a VAT waiver known as a VAT 1614D form. Further details can be found at www.hmrc.gov.uk
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