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Buying a Freehold Pub, Wine Bar, Club, Restaurant, Hotel or Licensed PremisesSearch freehold and leasehold pubs, wine bars, clubs, restaurants, hotels and licensed premises for sale, to let, to rent or for lease. To refine your property search and sort properties for sale by price and location, use the search on the left. You can also set up emails alerts and we will send you the latest pubs, wine bars, clubs, restaurants, hotels and licensed premises for sale directly to your inbox each morning. If you need help or advice on buying a pub, wine bar, restaurant, club or hotel , please contact us.
Buying a Pub - Buying a Freehold Pub - Buying a Leasehold PubMaking that first break into the pub trade isn't easy, but if you have the right experience and a solid business plan, you should be able to secure the right finance package. Potential licensees should be aware that getting a mortgage to buy a business such as a pub, wine bar, restaurant, club, hotel or licensed premises is not the same as walking into a building society or bank when buying a flat, apartment or a house. Buying a pub, wine bar, club, restaurant, hotel or licensed premises requires a more specialised type of funding and even though there are many banks which are willing to give mortgages, there are a wide range of other funding sources, such as private lenders, where you could get a better mortgage rate or funding deal. By far the most important factor a mortgage lender will look at is your experience. Then you will need to show that the pub, wine bar, club, restaurant, hotel or licensed premises you are thinking of buying has the potential to make money from a number of sources. As well as wet sales, the mortgage lender will be looking for potential in food, accommodation, music, entertainment or whatever the pub or hotel business is best suited to. Mortgage enders are more likely to back you if you're buying a town or city centre pub rather than a rural, country or village pub, though if you can show strong food sales, getting finance for a village or country pub need not necessarily be a problem. A thorough understanding of the demographic of the local area is vital. With this information you can devise a sound business plan based on the needs of the local population. Finally, you need to show how you plan to grow the business over time by establishing your business and marketing it within and beyond the local community. If you can demonstrate all of that, commercial funding of single freehold pub purchases for up to 80 per cent of the valuation can be obtained. Finding The Perfect Pub or Hotel to Run as a Business Once you know hoe much you can afford you can start your search for a suitable pub, wine bar, restaurant, club or hotel to run as a business. We can help in agreeing all the terms to secure the deal, such as what, exactly, is for sale, where the boundaries of the property are and, if it is a freehold, does the freehold apply to the whole pub site? Sometimes a pub is sold freehold but the car park is leased. If you are buying a pub lease you need to look at the terms. As well as the tie these may include covenants or rights of way through the property and encumbrances clauses which prevent you doing specified things. Some pubs are sold delicensed, meaning the building may not be run as a pub. Find out what fixtures and fittings are included. Beer taps, for instance, may be owned by brewers. Establish whether full vacant possession is being offered are there any tenants living above the property? Establish whether a survey is needed and whether any planning or Green Belt issues apply, particularly if the building is listed or lies within a national park. Current planning permissions may also have to be taken into account. The terms of the licence are vital especially with regard to opening times. Also, find out whether any enforcement notices apply. As well as analysing the competition, take a look at the neighbourhood. Consider whether it fits your business plan and your skills as a licensee. Utilities are a thorny issue. Licensees have taken over pubs to find several agreements are operating with different suppliers. In other cases new tenants have been left with outstanding bills. Buying a Pub: Freehold PubThis is the term used as shorthand for the tenure of an estate in land
which exists in "fee simple absolute in possession" and identifies
the ultimate owner of a property. Such ownership usually includes not only the surface land or building,
but also the sub surface of a property and all the air space above. As part of the aim of simplifying the conveyancing process, the Law of
Property Act 1925 set out two estates or interests in land, namely the "fee
simple absolute in possession" or 'freehold' and the "term of
years certain" or 'leasehold'. Buying a Pub: Private TreatyThis is the most common form of buying / selling a property and essentially
involves a binding private contract for sale to be drawn up between the
parties. A sale of a property or investment opportunity by "private treaty"
allows the vendor a much greater degree of control over the actual sale
process and any specific conditions that should apply. However, unlike a
sale by auction, the actual completion of the sale can take considerably
longer to achieve. A commercial property agent is usually appointed to manage the disposal
process and a marketing strategy and marketing budget should be agreed with
the vendor, to meet the client's particular requirements. The estate agent's fee is usually based on a percentage of the sale proceeds achieved
and tends to be in the region of between 1% to 2.5%. This will usually be exclusive of VAT and disbursements, and legal costs. Buying a Freehold Pub: Purchase CostsWith property acquisitions, a prospective purchaser will normally incur
"acquisition" or "purchase costs" in addition to the actual purchase price.
These costs are essentially legal and surveyor's fees, VAT and stamp duty. The level of these costs will vary depending on each particular property,
the nature of the client/surveyor relationship and any changes in the rate
of Stamp Duty imposed by the Exchequer. At present the purchaser of a property sold with a purchase price in excess
of £500,000 could expect to have a combined acquisition cost equivalent
to about 5.75% of the purchase price. A prospective purchaser may have additional costs of acquisition arising
from a building survey or environmental survey. Buying a Pub: Stamp DutyThis is a Government fixed tax, chargeable on the execution of documents,
pertaining to transactions such as Leases, Agreements for Leases and Conveyances. The duty is payable by the purchaser or lessee, and the disposal document
can not be adduced as evidence of the transaction unless adequately stamped. The rate applicable is set by Central Government and varies depending upon
the value of the transaction.Current rates are as follows:· Up to
£60 000 - nil· Over £60 000, up to £250 000 - 1%·
Over £250 000, up to £500 000 - 3%· Over £500 000
- 4% Buying a Pub: Building SurveysA building survey is an examination of a building by a surveyor (which
may include specific tests by the surveyor or other experts) in order to
produce a report on the structural integrity of a building and the state
of repair.Such a report would usually cover the condition of the structure, incidence
of any defects to the fabric of the building and the state of repair of
fixtures and fittings, services and plant installations. Depending upon the instructions given to the surveyor; these physical features
would also be described in relation to safety, stability, strength, efficiency
and economy in use, ease of maintenance and other factors as required.A building survey is often required as a condition to the grant of a mortgage
or loan secured against the value of a pub or licensed property. Buying a Pub: Local Authority SearchesA local authority search is essentially an application for an official
search of the Local Authority's records, for written confirmation or a certificate
disclosing matters or encumbrances affecting the land. Where a lease is being granted or conveyancing takes place, a local authority
search should be undertaken. Typical information that might be revealed by a local authority search
includes:-(i) ownership of roads and sewers affecting the property.(ii)
any road widening schemes in the vicinity of the property.(iii) any breaches
of planning legislation.(iv) a history of the planning applications made
in respect of the property.(v) details of any pending Compulsory Purchase
Orders (CPO's).
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