A Lease is the right to occupy a property for a fixed term of years subject to many conditions and in return for the payment of rent. Most leases are assignable, which means they can be sold in the open market, subject to the purchaser being approved by the Landlord. You can find out more about leases here.
A Tenancy is a short-term agreement (initially 3-5 years), often with the tenant having the right to continue as tenant from year to year. The only value in a Tenancy is the fixtures and fittings with all profits being the tenants. To read more about this agreement visit our article “What is a tenancy agreement?”.
A Self-Employed Management agreement is ideal if you are looking to run your own pub business for a small ingoing fee. Generally, you will not pay either rent or the majority of the utility bills. Your stock, fixtures & fittings and till systems will be provided and your income is based on a percentage (variable depending on the pub and the offer) of weekly sales so the more you grow the business, the more you will earn. Does this sound like the agreement for you? Find out more here.
These are short-term agreements which can be terminated at short notice and are often used to enable you to move into the pub and start operating the business while a longer-term agreement is being finalised. Companies should make it clear to you that you are taking on a temporary agreement only and as such you are not covered by any of the codes of practice or by the Landlord and Tenant Act. Temporary tenancies cannot be assigned nor can sub-letting take place. These agreements are a maximum of a year long. The BII offer some great advice on these short-term agreements here.
For your Personal Licence, you will need to complete the APLH qualification. This is a one-day course with a multiple-choice exam of 40 questions to be completed in 40 minutes. At least 28 of the 40 questions must be answered correctly. There are many providers nationwide that you can undertake this training with. This costs around £150. Read more about this qualification here.
Once you have completed the APLH course successfully and obtained your certificate, you must then formally apply for your Personal Licence (you cannot apply before completing the Licensing Qualification). The cost for this is between £35 and £45. Once you receive your Personal Licence, you can act as the Designated Premises Supervisor (DPS) for any business that sells or supplies alcohol. You will also be required to undertake a DBS check. When all of these are in place, you will then be the person responsible for authorising staff to sell alcohol to the public. Don’t underestimate the level of responsibility for this authorisation.
Pre-Entry Awareness Training (PEAT) is an e-learning course that was designed for prospective tenants/lessees who are considering signing a pub tenancy or lease agreement in England & Wales. It covers the main issues which need to be considered before signing a pub tenancy or lease agreement.
If you are considering entering into a pub lease or tenancy agreement in England and Wales, taking PEAT will give you the knowledge you need to evaluate the agreement you are considering. This qualification is mandatory if you are taking a tenancy or lease with any pub company that has more than 500 pubs, but if you are new or returning to the trade it is hugely valuable. Find out more here.
In the United Kingdom, a tied house is a public house that is required to buy at least some of its beer from a particular brewery or pub company. You can be fully tied, partially tied or in some cases free of tie. This depends on the agreement that you take, the pub company that owns the pub and the deal that you negotiate with the pub owner. Most leases are granted by Pub Co’s subject to a tie, whereby the lessee (tenant) is obliged to purchase a specified range of products (usually all of its beers and lagers) from the lessor/landlord or its nominated supplier.
Broadly speaking the ingoing costs for a pub consist of a deposit, stock, glassware and sometimes the working capital you need to float the tills, buy additional stock and pay staff. With some breweries the cost of fixtures and fittings can be paid separately depending on the deal and agreement, on some deals this is included in the ingoing figures. Rent is separate from this and is payable monthly.
Generally, a fixture is understood to be any item that is bolted to the floor or walls, and a fitting to be any item that is free standing or hung by a nail or hook. Depending on your agreement you may be required to purchase or rent these. How you do this can be discussed with the Business Development Manager in your initial negotiations.
Unfortunately, this is a little bit like asking how long is a piece of string? There are many variables involved in the process of securing an agreement to take on a pub. This can mean the process can seem long and drawn out. Our advice here at FindMyPub.com is to make sure you keep the lines of communication open with ourselves, area managers or your contacts to ensure you do not miss out on any opportunities or developments.
In the majority of cases, pubs have some space that can be classed as private accommodation however this is not a hard and fast rule. How much space there is, and the standard of décor can vary wildly, some breweries and pub companies will help ensure this is up to modern expectations, but this is not always the case. This accommodation cannot be sublet to provide income.
The short answer is no. The pubs we are advertising are available on either tenancy, lease or self–employed management agreements, this means they are to continue trading as public houses. Our sister site SellMyPub.com has a number of properties that are for sale and, subject the correct planning permissions, a change of use may be possible.
The code came into force on 21st July 2016 and applies to all businesses owning 500 or more tied pubs in England and Wales. It governs their relationships with tied pubs but not with their managed houses or free-of-tie pub tenants.
The two principles of the code are:
- fair and lawful dealing by pub owning businesses in relation to their tied tenants
- tied pub tenants should be no worse off than if they were not subject to any tie
The code makes sure that tied pub tenants:
- receive the information they need to make informed decisions about taking on a pub or new terms and conditions
- have their rent reassessed if they haven’t had a review for 5 years
- can request a market rent only option to go free of tie and pay only a market rent in specific circumstances, including at a rent review or renewal of tenancy
Not found the answer to your question? Call one of our recruitment specialist on 01902 374940 and they will be able to help you.