With ever tighter restrictions being imposed by Banks on lending to the licensed sector, many operators are taking advantage of the benefits leasehold businesses have to offer.
The demand for pubs, restaurants and hotels remains strong but the restrictions imposed on lending to the commercial sector is preventing many keen buyers from taking the plunge, especially on freehold property where the capital required is much higher.
Instead people who want to run a pub, restaurant or hotel, are considering taking a lease or a tenancy. Tenancies provide the lowest cost of entry with investment typically between £20,000 to £45,000, whilst leasehold businesses provide a greater degree of ownership. Both provide buyers with an opportunity to get into the trade and prove their ability, often acting as a stepping stone to buying a freehold in the future. As well as a lower capital requirement there is a much wider choice of leasehold and tenanted opportunities available to choose from. There are some excellent businesses on offer from most Pub Companies and regional brewers, on very fair deals and with the added benefit of genuine business support.
We are also seeing an increase in the number of leases and tenancies becoming available from private landlords. These range from owner operators who don’t want to run their business anymore but cant/wont sell in the present market, to property investors who are building portfolios of property to let out and generate rental income. In many cases these private landlords offer an option to purchase the freehold once trading levels are established and funding becomes more readily available.
Tied Leasehold Pubs in particular have been unfairly tarnished in recent years and the opportunities they offer should be reconsidered. Many operators have achieved great success and become multiple operators of high regard. For example, Peach Pub Company, Fat Cat, Classic Country Inns, Massive Pub Co and Real Pubs who all started off in the pub trade with a tied lease pub as their first business.
All Fleurets offices have a wide choice of leasehold businesses available including pubs, restaurants and hotels. Examples include a Café Bar & Restaurant in an East Coast riverside town and yachting centre where a new free of tie lease is being offered by a private landlord at a price of just £20,000 for the trade contents.