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Bettesworths Pub Sales UK

STRONG ACTIVITY IN LEASEHOLD MARKET

Not only is the freehold pub market buoyant but the demand for leaseholds is almost equally as strong. Some of the purchasers of pub leases are new entrants to the licensed trade, but many are licensees with a wealth of experience. The leasehold market does, however, often allow a purchaser to buy a substantial business without a major cash investment required for a freehold premises. A leasehold inn is often the initial step into the pub market followed by a subsequent move onto a freehold freehouse.
This picturesque, fully licensed period inn, in a delightful village within 2 miles of the A303 has a restaurant with 40 covers, a lounge bar, public bar, skittle alley, extensive gardens and large car park, plus owners accommodation and 3 letting bedrooms.

Summarising the Leasehold market, Riccardo stressed that there are plenty of buyers around, but in order to effect a sale, it is important that up to date trading figures are available. The size of premium obtained for a lease on assignment, very much reflects the profitability of the business. Ric pointed out that leasehold businesses do not appreciate in value, unless there is a reasonable term of years left on the lease and there has been an increase in profitability, which is not eaten up by a large hike in the rent. With the large number of freehouses being purchased by pub companies, more and more leases are likely to become available in the foreseeable future. This could, warns Ric, result in lower prices being obtained on assignment as the supply of leasehold pubs on the market increases. So if you are thinking of a move, now may be a good time to take action, particularly as it appears likely that interest rates may increase later in the year as well.