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Buying a lease on a business?

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Suspirio
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2015/01/06 13:13:06 (permalink)
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Buying a lease on a business?

Anyone know about this sort of thing? Here is a pub. It is on a 20 year lease that started in 2006. From what it says here, as I understand it, to purchase the lease it will cost £110.000 and you will also have to pay a further 50k a year in rates. Is that what it's saying? Does the 50k include council tax and business rates or would they need to be paid separately?  http://www.agg.uk.com/pro...a_source=NDU5LDIzMTA1=
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    chris182
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    Re: 2015/01/06 14:33:56 (permalink)
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    You'd have to be insane to consider getting a pub, I considered it for a few months till I was talked out of it.

    It was a nice idea though, having some hot barmaids pull pints wearing very little while i watched the money roll in, then I realised I would actually probably end up bankrupt
    #2
    Suspirio
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    Re: 2015/01/06 14:42:16 (permalink)
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    Why would you end up bankrupt? A pub is not automatically a bad business even though many are closing.
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    chris182
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    Re: 2015/01/06 15:42:39 (permalink)
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    Well the pub I was looking at is now closed down for good, you might not go bankrupt but you won't make a lot of money.

    Open your own gym let the direct debits roll in each month and relax
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    RobW
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    Re: 2015/01/06 16:37:39 (permalink)
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    The way I read it is 50k rent not rates.. I assume this rent is paid to the brewery for the building..

    Also strange that the details do not mention turnover or profit..
    #5
    chris182
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    Re: 2015/01/06 17:21:24 (permalink)
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    Plus a five year review of the rent, which is pretty standard.

    The pub I looked into said the accounts were unavailable to view or some crap and it was a tied pub.

    I watched the panorama doc about Britain's pubs closing I'm sure it was that anyway, a couple were earning a turning over alot sorry I forget the amount and couldn't afford to survive it was a busy pub but the brewery just screwed them.

    #6
    Total Rebuild
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    Re: 2015/01/06 18:10:36 (permalink)
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    That's the problem with pubs that are tied to a chain or a brewery. Make no effort, pub goes under. make a ton of effort, get the punters in and the tills ringing and they just up the rent accordingly. Hence why landlords tend to stay in pubs till the rent review period then move one when the brewery screws them. You also are more often than not tied to buying EVERYTHING from the brewery. So that barrel of fosters you could get on the open market for $80 will cost you $130 from the brewery. Same goes for soda, cordials, etc etc.  

    You did gain far too much fat though,I mean,you're not muscular at all,you're just a fat mess.
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    Suspirio
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    Re: 2015/01/06 20:21:07 (permalink)
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    Yes if you are tied to a brewery for beer then you forgo being able to sell craft beer from independent breweries. Although you can still sell wine and spirits where there is still good money to be made if you play it right. The above pub is only tied for beer and cider which does give you options.
    post edited by Suspirio - 2015/01/06 20:23:39
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