FREQUENTLY ASKED QUESTIONS
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 freehouses.
23% of pubs are directly managed by brewers and major pub owning companies,
WHAT DO ALL THOSE TERMINOLOGIES MEAN....?
FREEHOLDS? Price band upwards of £60,000 - usually Free of Tie - provide good security for loan purposes.
LEASEHOLDS? Price band circa £20,000 - £120,000 - can be Free of Tie or Partially Tied. Usually full repairing & 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 beer 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 & 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 a 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 apportionments. Obviously every application is considered on the merits of turnover and profits.
WHAT WILL A W GORE (Pubsales) 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.
Have you anymore questions not listed above? If so, please Email us.