If you are thinking of purchasing a pub for the first time, the following explanations may be of some use to you.

There are three main categories of property available to you the purchaser, Freeholds, Leaseholds and Tenancies, each having their own benefits and pitfalls.

FREEHOLD This is the top end of the purchasing scale. Bought outright, you are in total control of the business and the property and responsible for all repairs and renewals. Main benefit is being free of any tie to one supplier/brewer. Main pitfall is the high cost of a good outlet and continued cost of repairs.

LEASEHOLD This is the mid-range in the money market place. These are available in either tied or free of tie formats from Brewers and Property Landlords. Most leases are fully repairing and insuring, so the condition is important. The value of the lease is gauged by the business profit and length of unexpired period of the lease. Main benefits are accurate knowledge of the business prior to taking over, whilst main pitfall is high rents and continued repairing costs like the freehold properties.

TENANCIES Although the cheapest of the three styles of property, there are definite advantages to the tenancy. Firstly, your brewer/landlord is responsible for the building repairs, and no goodwill payments exist on the business. This makes them cheaper, yet equally as profitable if run well.
All three styles of pub are attractive in their own right. All pubs are very individual and will therefore suit different applicants. Always remember to study the pub very closely and make sure the pub you apply for is the one you want.

If in doubt, please ring the Agency Line for friendly advice from our staff on 020 7709 8788 or fill in the Enquiry Form.