Are you thinking of purchasing a pub, try Young and Smith. Thank you If you are thinking of purchasing a pub for the first time, the following explanations may be of some use to you. As our magazine name FLaTs implies, there are three main categories of property available to you the purchaser, Freeholds, Leaseholds and Tenancies, each having their own benefits and pitfalls. 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 pitfall is the high cost of a good outlet and continued cost of repairs.
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.