THE MARKET

The credit squeeze and recession has its “upside” and that is, by placing opportunities in front of us and as we make our way out of recession the foresight of those “grasping the metal” will pay off. Pubs offer a virtual inflation proof cash generating business with the ability to live free out of the business (subject to Inland Revenue guide lines), usually within historic surrounds and properties of local significance. They are great places to bring up families and enjoy the community spirit of local people. You get back whatever you put in.

Way back in the 1600’s a well known observer of English Life stated “ England, lose your inn’s and you will lose England”, how true. This will never happen, as inn’s and pubs are a well established part of our culture and heritage. Yes, change will happen and a number of pubs are closing but we suggest that you stand back and look at them and you will recognize the reason why.

 

The “on trade” comprises of some 60,000 Inns, Public Houses, Coaching Inns etc

Approx 25% (15,000) of the outlets are privately owned and operated FREEHOLD-FREEHOUSES
A further 22% (13,200) are operated by companies as MANAGED HOUSES. The balance of 53% (31,800) are individually operated LEASEHOLDS with a handful of traditional style tenancies. This means that there are around 46,800 Pubs and Inns within England and Wales run as private businesses by individual operators, and with more managed houses being converted to Leaseholds by the day, however some of these brand new lease opportunities may not be what they seam on face value, i.e.“ nil premiums” quoted usually mean that there will be a large capital amount required for the F&F and also lease terms may be onerous with large rents and restricted opportunity to sell the lease on further down the line so we would suggest that consideration is given to our professionally valued lease assignments as your 1st point of reference. The opportunity to become your own boss by running your own licensed business has never been better or more available.
Retiring FREEHOLDERS should consider leasing out their business and receive a regular income by way of rent or alternatively speak to our partners NORWICH UNION to discuss tax efficient methods of selling your business and benefiting from a regular income without the problems and risks of still owning the property, this relationship with NU is unique to GA-SELECT. Also for newly inspired businessmen and women to enter the trade providing security for both themselves and their families. Remember that most pubs are family homes as well, indeed, “a rewarding way of life”.

 

Above: MD, Graham Allman “called to the bar”, I enjoy getting behind the bar of my local pub and talking to the “wags” when the landlord asks me to “pull a few” for him. Not only do I find it enjoyable but it gives me an up to the minute feeling for the views of my customer’s customers.

”the Professional Business decision”