Paramount Investments

150 West End Lane
West Hampstead
London NW6 1SD

Tel: 020 7644 2333
Email: Investments
Blog: UK Pub Sales
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Pubs For Sale: Brewery & Pub Co Pubs For Sale

Paramount Investments offer freehold pubs & leasehold pubs, public houses, bars, restaurants, hotels and other licensed properties for sale as investments or for redevelopment. We cover all areas of licensed property, hotel and pub sales, investments and developments in England, Scotland and Wales.

Whether our clients are buying a pub or hotel to redevelop or to run as a business, we aim to closely match their individual requirements and we act on behalf of breweries, pub companies, pub landlords, publicans, property developers, private, corporate and overseas property investors.

As a pub sales agent acting on your behalf, we can negotiate appropriate lease terms or freehold conditions and can act on a retained or non retained basis.

Freehold Pubs For Sale in UK: Why Buy A Freehold Pub or Hotel Now?

Freehold pubs and hotels are now prime targets for the savvy property investor as buying a pub is likely to work out cheaper on a pounds per sq ft basis than buying a house in the same street.

The UK licensed property market is being flooded with run down or empty pub and hotel sites as a combination of cheap beer in supermarkets, rising costs and the smoking ban have taken their toll on the pub trade.The coming months may see the acceleration of the pace of pub closures as pub landlords, breweries and pub companies such as Admiral Taverns, Punch Taverns and Enterprise Inns face up to the pressures of the credit crunch.

The British Beer & Pub Association estimates that four pubs are closing down every day and that the rate of pub closures is 14 times faster than in 2005. There are just over 57,000 pubs in Britain today, compared with 69,000 pubs in 1980.

Beer sales in UK pubs, relative to other outlets such as supermarkets and off licenses, have been falling for 30 years and according to the BBPA, beer sales over the bar are at their lowest since the Great Depression.

UK brewery and pub company shares have suffered "extraordinary underperformance". Many pub trade shares have retreated 50 per cent from their 2007 highs. Several UK pub chains, embracing high-street names such as the Slug and Lettuce, Hogshead and Walkabout, have collapsed or been forced to sell. Industry groups say, in all, about 50 major British breweries have closed since 1990.

Pub, Hotel & Licensed Property Finance

Making 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 is not the same as walking into a building society or bank when buying a house.

Purchasing a pub 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 deal.

By far the most important factor a lender will look at is your experience. Then you will need to show that the premises you are thinking of getting involved with has the potential to make money from a number of sources. As well as wet sales, the lender will be looking for potential in food, accommodation, music, entertainment or whatever the business is best suited to.

Lenders are more likely to back you if you're looking at a town pub than a rural one, 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 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

Once you know hoe much you can afford you can start your search for a suitable pub or hotel. 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 lie. and, if it is a freehold, does the freehold apply to the whole site? Sometimes a pub is sold freehold but the car park is leased.

If the pub is a 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.