Pubfolio Limited through County Estate Management (Pubs) has launched a new 3 year Free of Tie tenancy agreement which offers greater flexibility to a licensee.
Heads of Terms – 3 year Free of Tie Tenancy Agreement
Introduction
These notes are a summary of the main clauses of the 3 year Tenancy Agreement offered by Pubfolio. They should not be construed as a definitive interpretation of any agreement that you sign.
Taking on a 3 year agreement is a significant undertaking and should not be entered into without prior consultation with your Solicitor.
CEMP, on behalf of the Property owner, reserves the right to alter any clause in the agreement which may or may not conflict with this summary.
1. The Tenancy Agreement
Term: Up to 5 years excluded from the 1954 Landlord and Tenant Act
Costs: Tenant to pay Landlord’s legal costs
Premium: None
Permitted Use: Use as a public house pursuant to Class A4 together with ancillary restaurant and/or sale of hot food pursuant to Class A3.
Terminations: The Tenant may terminate the agreement at any time by giving not less than three months written notice.
However, should the company feel that the premises licence is in jeopardy or subject to a review/ hearing then the Company may give the tenant 28 days notice.
2. The Rent
Rent is negotiated for the term taking into account the dilapidations, inventory of loose trade fixtures & fittings and the benefits available to the tenant under the terms of the Tenancy Agreement.
Payment: Monthly in advance.
Deposit: A non interest earning deposit equivalent to a quarter’s rent is required on commencement of the agreement.
3. Insurance
Landlord: CEMP will arrange full building insurance. Premium is recharged to the Tenant monthly in advance.
Tenant: Responsible for own contents cover to include inventory, stock, all fixed glass, justices on licence, employer liability and against third party and public liability, loss caused by interruption, loss of money.
4. Fixtures & Fittings
Tenant: Trade inventories to be purchased at valuation upon completion, though these maybe offset against any dilapidation schedule, if appropriate.
5. Repairs
Tenant: The tenant shall not be responsible for the repair and maintenance of the main structure of the building(s), structural walls, roof or foundations. The Tenant is to maintain and repair the whole of the premises in good and substantive repair and condition, and in good decorative order.
6. Terms of Trade
Tenant: The Tenant is free to purchase and stock all beer, ale, low alcohol or non-alcohol ales, lagers and cider in draught and packaged forms and all wines, spirits and minerals from suppliers of his/her choice.
Amusement Machines: The tenant is tied to the Landlords nominated suppliers. The income after deduction of all rents, licenses and gaming duty to be shared equally between the Tenant and the Landlord.
7. Alterations
The Landlord does not permit the Tenant to undertake alterations.
8. Signage
Tenant is free to sign the property with normal, inoffensive trade signs showing the identity of the property, at their own cost. Tenant is not permitted to use the property for the erection of advertising hoardings. Note that any change of pub name must have landlord's approval.
9. Licensing
The tenant must hold a Personal Licence. The Premises Licence will remain in the Landlord’s name. The premises should also be registered under the Food Act 1990 and all licences/permits as required by any statutory authority must be displayed.
10. Assignment
The Tenancy Agreement is non assignable.
For more information call County Estate Management (Pubs) on 01225 763171
Heads of Terms – 25 year Free of Tie Tenancy Agreement
Introduction
These notes are a summary of the main clauses of the 25 year Lease offered by Pubfolio Limited. They should not be construed as a definitive interpretation of any lease that you sign. Taking on a 25 year lease with Pubfolio Limited is a significant and long-term undertaking and should not be entered into without prior consultation with your Solicitor. Pubfolio Limited reserves the right to alter any clause in the lease which may or may not conflict with this summary.
1. The Lease
Term: 10 to 25 years with full protection under the 1954 Landlord and Tenant Act
Costs: Lessee to pay Landlord’s legal costs
Premium: None
Permitted Use: Use as a public house pursuant to Clause A4 together with ancilliary restaurant and or sale of hot food pursuant to Clause A3. Sub letting of whole or part of the premises is permitted with Pubfolio Limited’s prior consent.
2. The Rent
Rent: Rent is negotiated for the first five years taking into account the dilapidations, inventory of loose trade fixtures & fittings and the benefits available to the lessee under the terms of the Lease.
Payment: Monthly in advance by Direct Debit plus VAT.
Deposit: A non interest earning deposit equivalent to a quarter’s rent is required on commencement of the agreement.
Reviews: Every 5 years to open market value or in the event of dispute by expert valuation of the Royal Institution of Chartered Surveyors, the rent determined to be binding on both sides.
3. Insurance
Lessor: Pubfolio Limited will arrange full building insurance. Premium is recharged to the lessee monthly in advance.
Lessee: Responsible for own contents cover to include inventory, stock, all fixed glass, justices on licence, employer liability and against third party and public liability, loss caused by interruption, loss of money. Pubfolio Limited through its affinity group may offer you an insurance policy that covers all these risks at a reduced premium.
4. Fixtures and Fittings
Lessees: Trade inventories to be purchased at valuation upon completion, though these maybe offset against any dilapidation schedule, if appropriate.
5. Repairs
Lessee: Responsible for all repairs to the structure, services and fabric of the building, internally and externally.
Initial: A schedule of works is agreed with the lessee with up to 12 months to complete works. These costs are taken into account in determining the rent.
Decoration: Lessee is responsible for external building redecoration every 3 years and also in the last three months of the term. Lessee is responsible for internal trade and domestic areas redecoration every 5 years and also in the last three months of the Term.
6. Terms of Trade
Free of Tie on All Beers, Ciders and Other Products: The Lessee may purchase any of these products from any supplier. Pubfolio Limited operates a buying group to negotiate en bloc on behalf of the lessee. The lessee may join the buying group at any time and take on the full benefits of that group.
Amusement Machines: The Lessee is tied to the lessor’s nominated suppliers. The income after deduction of all rents, licenses and gaming duty to be shared equally between the lessee and the lessor.
7. Alterations
Non-structural alterations are permitted subject to Pubfolio Limited consent. Any alteration permitted by the lessor may be required to be put back to the original condition by the lessee at the end of the Term. Lessee is responsible for obtaining all necessary consents and statutory approvals.
8. Signage
Lessee is free to sign the property with normal, inoffensive trade signs showing the identity of the property. Lessee is not permitted to use the property for the erection of advertising hoardings. Note that any change of pub name must have Pubfolio Limited approval.
9. Licensing
The lessee must have a Personal Licence and is responsible for obtaining transfer of the Premises Licence; register the premises under the Food Act 1990 and display all such licences as required by any statutory authority.
10. Assignment
Initial Period: The Lease is assignable after the initial period of 3 years, subject to Pubfolio Limited consent (this period may be waived under certain circumstances at Pubfolio Limited’s sole discretion).
Charge: Lease may be charged to a Bank subject to Pubfolio Limited’s consent.
Privity of Contract: The lessee may be required to enter into an Authorised Guarantee Agreement with respect to the direct assignee.