When searching for pubs to lease, it is important to take into account the recent changes to the Sui Generis Use Class. The changes, introduced in September 2020, delivered a shake up to the use class, changing which properties fell into this category described as “in a class of its own”. As documented in our extensive Sui Generis Use Class guide, pubs and bars were moved out of the A4 Use Class and into the Sui Generis class. As a use class, Sui Generis properties can not be automatically permitted development rights to change to an alternative use, even changing from one Sui Generis use to another Sui Generis use will often be subject to the full consideration of the planning application process.
With this in mind, it is important to ensure you are searching for the right use class if you are looking for pubs to lease, which will be Sui Generis. Should you have any questions regarding the use class planning laws when searching for pubs to lease, our team are always on hand to help guide you through the process.
Pubs for Lease vs Tenancy
When taking on pubs for lease, usually involving a leasehold agreement, the licensee (you) will take on the right and responsibility to occupy and run the pub for a fixed term as part of your own business. These lease agreements can be created by landlords, breweries, or created by other pub owners.
Pubs for lease are often on agreements lasting for over ten years, offering medium and long-term opportunities for those looking to take them on. Whilst they are the more expensive option, you will retain a greater degree of control over the business and the premises.
As part of the leasehold agreements, when taking on pubs for lease, the drink selection will usually be tied to specific beers and other products.
A key difference to a pub tenancy is that you as the licensee will be solely responsible for the maintenance, repairs and costs of running the pub. However, you will have the option to sell on the goodwill of the business, which is to say that you could potentially sell the business in the future, which you are unable to do with a tenancy.
Taking on pubs for lease isn’t right for everyone, but can be a lucrative option for many businesses. If you would like to further explore whether a pub lease is right for you, either register your commercial property search requirements with us, or contact our team.
If you are looking to enter the leisure industry with a pub tenancy, it is vital to choose a tenancy agreement and property that suits your needs and requirements. Our team of leisure property industry experts provide a full range of advisory, agency and valuation services for all stages of the pub tenancy process.
Whether you are looking to find a tenant for your pub or a property to suit your industry ambitions, our team can help.
Pub tenancies are often regarded as a cost-effective and sensible route into the pub sector, especially for newcomers who want to own a pub business.
With a pub tenancy, tenants will not own the pub. Instead, they will be renting the premises off the pub landlord, assuming the right to occupy and run the pub for an agreed upon length of time. This rent will typically include many of the essentials including;
- Fixtures and fittings
- Cutlery and Crockery
- Essential Supplies
The majority of pub tenancy agreements are ‘full tie’, meaning that the tenant will be required to purchase beers and stock from the pub landlord. When the landlord is a brewery, this is almost guaranteed, although with other types of landlords such as private pub companies, occasionally ‘partial tie’ contracts will be offered that give the tenant slightly more flexibility in choosing suppliers.
However, you will still be self-employed and responsible for hiring all staff members, just like with a pub lease.
If you would like to further explore whether a pub tenancy is right for you and your business, either register your commercial property requirements with us, or contact our team.