Good business means all parties knowing what they're signing up to and our Lease Operations Managers will take you through the process and alert you to all key points, and you must also seek independent legal advice before signing any Lease agreement.
Our standard lease consists of the following key terms:
- The lease runs for a 10-year term (although longer or shorter terms may be considered in exceptional circumstances)
- You are required to put the building in good repair & keep it in that condition, as well as redecorating at regularly specified intervals
- You purchase the fixtures, fittings, stock-in-trade and glassware
- Rent is paid monthly and in advance
- There is an open market rent review every 5 years
- We take out Building Insurance on your behalf which we charge on to you and you are required to take out all other necessary business insurances
- You will be required to leave a deposit, usually £10,000, for the term of the lease unless otherwise agreed.
Every pub is different, particularly when it comes to the value of its inventory, but in broad terms the indicative capital required to take on a business is anticipated to be a minimum of £35,000. This figure does not include working capital, which you should include in your business plan.
In addition to the deposit and the inventory value, indicative other costs to be considered will include the requirement to pay professional fees (e.g. your and our solicitors fees), stamp duty, and one month's rent in advance. Details of the capital requirement for your specific pub will be provided to you by your Lease Operations Manager at an early stage in the process.