What is a Freehold?

A freehold property means the whole site, bricks and mortar, fixtures and fittings is included in the sale - it is an outright purchase.

What is a Leasehold?

A leasehold property is owned by either a brewery or private investor who will lease the business to you for an agreed annual rent. The turnover and fixtures & fittings included will determine the premium amount.

What does L&T Act protection mean?

Basically the lease is legally protected by the Landlord & Tenant Act to ensure that at the end of its term it will automatically renew at its end for the same term and under no less favourable terms.

Do I have to pay the premium again upon renewal of the lease?

No. The premium is paid upon purchase of the lease; there is no further premium to pay upon renewal.

What does free of tie, partial tie and fully tied mean?

A free of tie lease will mean you are free to buy all products that are for sale from any supplier you wish. Partially tied means that the freeholder/landlord will require that you purchase certain products from suppliers.

What is S.A.V?

This is Stock at Valuation. It is an additional cost on the day of completion for any stock on site that is unopened.

Do I need a solicitor to complete the transaction?

Yes, both vendor and purchaser need to instruct a solicitor who is experienced in the licensed sector to avoid any problems during not only this transaction, but also any future sale.

Do I need a personal license?

Basically Yes. A brewery or private freehold will NOT assign any lease to any purchaser who does not have a personal license. You cannot sell alcohol without a personal license.

What dilapidations?

These are repairs/redecorating etc that the existing lessee will be required to complete before the lease can be re-assigned. The brewery will have a report done which will specify work that needs to be done to bring the property back to the state it was in when the current lessee purchased.

Deposits - how do we ensure that our chosen business is secured and that we will not be "gazumped" therefore occurring expensive abortive fees from solicitors, valuers and surveyors?

If a purchasing client wishes to have "exclusivity" within a purchase they have the option, subject to agreement with the vendor, to lodge a deposit to be held in GA-SELECTS client account, which is used against the final completion statement. This enables due diligence to be undertaken by your solicitors and in the case of a lease, for interview by the freeholder. We suggest that this is for a period of twelve weeks however can be over any time scale agreed by all parties.

The deposit, known as a "non refundable deposit" is a standard business conveyancing instrument used to secure business's and property used widely within the industry. The deposit will be refunded to the purchaser if in the unlikely event that the vendor pulls out of the transaction or title cannot be proven or our sales details are proven incorrect. This is a proven good and fair business practice and the Sunday Times reported that 1 in 7 property deals undertaken by a well known "Blue Chip" business and residential agent was secured by way of a non-refundable deposit.

It makes all parties feel more positive and goes towards securing both purchasing and vendor clients. The firm will not undertake any further advertising of the business other than has already been placed. Our website will be endorsed with "lockout agreed".

Deposits - if I don't lodge a deposit what happens?

The business will stay on the market until contracts have been exchanged always with the risk of another purchaser stepping in. It is our policy to place all offers to our vendors and we are not biased to purchasers who want to lodge a deposit, however we do weigh the strength of an applicant and their commitment to proceed with the deal and require confirmation of the funding necessary to complete on the purchase, then it is totally the choice of our vendor who they run with.

When does an EPC need to be provided?

A commercial EPC should be provided to the prospective new owners when marketing or viewings take place and confirmation that it has been provided will be part of the pre-requisites requested by the Solicitors acting for the Purchaser or incoming Tenant. An Energy Performance Certificate is required when a building is constructed, sold, rented out or where modifications in its use have been made.

What type of buildings require an EPC?

Virtually every type of commercial building requires an EPC when it is advertised for letting or sale. The only properties exempt from a commercial EPC are places of worship such as Churches and Temples and properties without any form of conditioning (ie. heating and cooling) such as agricultural barns.