Different Ways You Can Purchase a Pub for Sale

Posted on: 7 June 2016

If you are looking to make a lucrative business investment, you may want to consider a pub for sale. However, opting to purchase a pub is not just about having the money at hand to do so. One thing most newbie purchasers do not realise is that owning a pub does not automatically mean buying it outright.

There are several different ways that you can take ownership of a pub. Your choice would be dependent on the time you have as well as the amount of profit that you would like to make. So what are some of the options you have when it comes to purchasing a pub?

Pub tenancy

In this situation, you enter into a rental agreement with the pub owner. The agreement will stipulate a specified duration of years in which the pub will be under your full control. It will also stipulate what percentage of profits the pub owner is entitled too. This agreement can then be reviewed after the time has passed to determine whether the arrangement is working for you, the tenant, as well as the pub's initial owner. In the event that the pub owner would want you to stop running the pub, they would have to give you a notice and cannot simply take control of the pub from you. Pub tenancy is great for newbies who are testing the waters when it comes to owning a pub as it gives you hands-on experience on what the responsibility would entail. 

Pub leasehold

When you opt to run a pub leasehold, you would essentially be buying the pub for a stipulated period of time. You could buy it either from a previous leaseholder whose lease has finished or directly from the initial pub owner. The difference between a leasehold and pub tenancy is that you can opt to sell the pub on your own after your lease is up to another individual. It should be noted though that if you purchased it from a pub owner, the pub owner would have to come into agreement with you on the sale as well as the price before it is leased to someone else once your time is up.

Pub freehold

When you opt for a pub freehold, you are essentially buying it just as you would any other commercial property. All costs would be your responsibility. However, all profits would also be exclusively yours.