|
QUESTION
|
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
normally buy the fixtures and fittings and rent the building. |
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| Am
I tied to a Brewery? |
You
own the business, you trade as you wish, but may be tied by your loan deal. |
You
are likely to be tied for machines and to 1 or more Brewer's products for
most drinks, the rest is down to you. |
You
will normally be tied for all drink supplies and work with the Landlord/Brewery
to develop the business. |
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|
| Do
I need experience? |
Not
essential but lenders like to see some business knowledge and maybe a business
plan. |
Not
essential but a course or some business knowledge is useful. Most Brewers
and Pub Companies have compulsory training courses and will require a business
plan. |
Many
Brewers and Pub Companies have their own courses and many tenants are "first
timers". |
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| Do
I need any qualifications? |
You
will need to hold a Personal Licence, granted by the local authority.
Important to have the BII (British Institute of Innkeepers) NLCPLH (National
Licensee Certificate for Personal Licence Holders) & Health &
Hygiene Certificates which you would gain on most training courses.
|
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| Can
I borrow money? |
Generally
up to 70% or so of the purchase price |
Possibly
on well traded operations or if other security is offered then some funds
could be available. |
No.
Possibly overdraft type facility. Some tenancies are available for very
little outlay. |
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| How
do I get a Licence? |
You
will need to make an application to your Local Authority
|
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| What
am I buying? |
The
price is a mix of the property and business value. Stock and your own costs
are normally extra. |
The
premium is for the existing trade and value of the lease. Fixtures and fittings
may be included. |
You
are buying the fixtures and fittings. The figure is agreed by your valuer. |
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| What
is the Rent and Review date for? |
You
don't pay rent. |
You
rent the building. Most 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 regular intervals, maybe
3 or 5 years. |
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| Who
looks after the property? |
The
property is entirely your responsibility. |
Your
lease will normally make you responsible for all decoration and repairs
needed. |
Normally
you are only responsible for the interior repair and decoration. |
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| Are
there any other costs to pay? |
Stock
is bought on the day of take-over. Other costs may be Solicitor, Licences,
Stock-taker, Stamp Duty and in some cases VAT. |
May
require rent in advance or deposit as well as stock on the day. Plus Solicitor,
Stock-takers, Licences and if applicable Stamp Duty. |
The
"Ingoing" quoted normally includes an estimate of stock and takes
into account valuers fees, working capital and security deposity. |
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| What
do accounts tell me? |
They
should show the takings for a 12 month period and the cost involved in selling
the goods and operating the business. |
You
are not buying the business. Limited barrellage figures may be available. |
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| What
is 'Gross Profit'? |
The
amount remaining after cost of the purchases are deducted form sales,
i.e. 45% GP = £45 from every £100 of turnover after deducting
VAT. From this your overheads are deducted to leave a NET Profit.
|
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| What
is a Barrel? |
The
Brewery may quote turnover as barrels, either just beer or all sales including
Wines & Spirits-composite barrellage. 1 Barrel is 36 gallons = 288 pints. |
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| What
can I earn? |
It
is down to you!
Remember you are living out of the business, so profits are yours to re-invest.
|
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| Do
I need a Solicitor? |
Most
probably, to carry out the legal work |
Advisable
to check the lease details and to carry out the other legal aspect of the
transfer/letting. |
Not
essential but could be useful both now and in the future. |
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| Do
I insure the property? |
Yes,
You will need cover from the day of exchange. Our associates at BSIS will
be able to help with the Tasker INNSURE policy |
Your
rent may include building insurance. Our associates at BSIS will be able
to help with the Tasker INNSURE policy |
Brewers'
and Pub Companies' requirements vary but you will need specialist pub insurance
for contents, stock, etc. Tasker INNSURE can help. |
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| What
happens when I want to move? |
You
instruct Tasker and Co to find you a buyer. |
You
can sell your lease on through Tasker and Co. |
You
cannot sell your tenancy but can move, selling on your stock and inventory
which can be valued by Tasker and Co. |
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| What
do I do now? |
Hopefully,
you have now decided what type of pub you will go for. By keeping in touch
with us we can update you via our property list, which is updated every
time there is a change. The more information you can provide then the better
we can pin-point property of interest. |
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