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Frequently Asked Questions

WHAT DO ALL THE TERMINOLOGIES MEAN?

 

FREEHOLD? Price band upwards of £60,000 – usually Free of Tie – provide good security for loan purposes.

LEASEHOLD? Price band circa £20,000 - £120,000 – can be Free of Tie or Partially Tied. Usually full repairing and insuring with terms for 10, 15, 20 or 30 years – tenure probably secure – subject to rent reviews and can usually be assigned for a premium, dependent on profits shown.

TRADITIONAL TENANCIES? Price band circa £10,000 - £60,000. Tenant usually tied for beers sales and may also include other products. Responsibility for internal decorations/servicing prevail, with possible addition of landlord’s insurance costs. Terms – year on year, 3, 5 or 9 years. Normally tenants are secure and can renew agreements, but can be ‘contracted out’ in some instances. Ingoing costs will include purchase of inventory at valuation, stock and glassware, together with landlord’s security deposit. The agreements are non-assignable.

WHAT MEASURE IS A BARREL OF BEER? Equivalent to 36 Imperial Gallons (288 pints or 163 litres).

SAV? Stock at Valuation – wet/dry stock + glassware + small catering effects.

WHAT LEVEL OF FINANCE CAN I ARRANGE? Loans will usually be secured on ‘bricks & mortar’ valuations i.e. freeholds. In the case of leases/tenancies – the security is often your home or other assets upon which is legal charge can be attached and all applications will be subject to status. As a general guide – a loan of 50% will be granted on the purchase price which will then allow for working capital – purchase of stock – fees and appointments. Obviously every application is considered on the merits of turnover and profits.

WHAT WILL A W GORE & CO CHARGE? The firm charges varying scales for the various work that is undertaken. Quotations are available upon request and without obligation. On sales/lettings – usually no sale no fee.

DO I NEED TRAINING? You need a Personal Licence to run a bar, applicants must complete and pass recognised courses – as a minimum ‘The National Certificate for Personal Licence Holders’. Hands-on practical experience is preferred by Landlords. New tenants will normally be obliged to attend short company courses, for which a charge is made – circa £400 to £500.

 

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Did you know that....

  • The Licensed Retail industry is one of the largest employers in Britain, employing nearly half a million people.

  • There are approximately 60,000 pubs across the UK.

  • Every year UK pubs sell over £10 billion worth of beer, ales, lager and stout, and over £5 billion in food.

  • 42% of pubs are run as small businesses by tenants/lessees.

  • 35% of pubs are free houses.

  • 23% of pubs are directly managed by brewers and major pub companies

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