Pub Co Tied Leases, Questions that you need to Ask and Answers that you need to know. (Part 1)

By | September 29, 2018
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Pub Co Tied Leases, Questions that you need to Ask and Answers that you need to know before you start spending money. (Part 1)

All these questions you need positive answers to, in writing, from your Pub Co/Landlord before  you consult a Solicitor/Commercial Lawyer or seriously consider taking a Tied Lease and start paying out money. A number of the Questions are and can be the cause of failure without a serious injection of cash, in many cases with Tied Commercial Leases.

In our opinion these Q.A’s. should be part of a Commercial Agents Pub Details and would save a lot of potential problems and wasted time by potential purchasers.

These questions are based on a standard Commercial Lease, they do not represent or replace using a Commercial Lawyer or legal advice, they are all issues that people failed to understand or caused, in many cases, serious problems for people taking Tied Leases.

There are two copies of the Q.A’s, the first you need to ask any Landlord or Pub Co whose property you may be considering, for written answers, do not accept blanks, verbal or evasive answers under any circumstances.

See Note Below:- Click on this LINK  for our thoughts on the Answers to these Questions for your guidance.

Pub Co/Landlords Copy to view and complete, if they give evasive answers, refuse or leave blanks, don’t have anything to do with that company.

The Lease.

1. What happens if I fail to pay the rent?

Landlords Answer:-

2. What happens if I fail to pay the Business Rates?

Landlords Answer:-

3. Why do I need a Survey?

Landlords Answer:-

4. Why do I need dated photographic evidence of any survey faults?

Landlords Answer:-

5. Why do I need approval to carry out improvements to the property?

Landlords Answer:-

6. Can I sell or change the Fixtures and Fittings (F&F)?

Landlords Answer:-

7. Why do I have to pay a deposit to the Landlord and how much?

Landlords Answer:-

8. What is the Authorised Guarantee Agreement (AGA) and the implications for me?

Landlords Answer:-

9. Do I have to use the Landlords Insurers?

Landlords Answer:-

10. Does the Landlord have right of entry to the premises at any time?

Landlords Answer:-

11. Why do I have to have Brulines or similar as a monitoring system?

Landlords Answer:-

Training.

12. How many qualifications do I need to take and which ones?

Landlords Answer:-

13. How long will these courses take and how much do they cost?

Landlords Answer:-

14. How much training will I get after I have taken on the lease?

Landlords Answer:-

15. How much training do I need to become a Reasonably Efficient Operator (REO)?

Landlords Answer:-

Landlords Supply Tie

16. What is the Supply Tie?

Landlords Answer:-

17. How much credit do I get with the Supply Tie?

Landlords Answer:-

18. Do I get any discount?

Landlords Answer:-

19. Do the discounts get included in the so called divisible split of profits?

Landlords Answer:-

20. Can I buy out in an emergency?

Landlords Answer:-

21. What happens if I can’t pay my Supply Tie Account?

Landlords Answer:-

22. What happens if I go on to a Rescue Package?

Landlords Answer:-

Rent Reviews

23. Do I need professional Advice on a Rent Review?

Landlords Answer:-

Trade

24. The business is Tied, how much increase in the Tied business would you consider realistic?

Landlords Answer:-

25. Can I apply for the MRO (Market Rent Option) with this Pub and how costly will it be and will I be successful in my application, in the event of the Pub Co not granting the MRO can I declare the lease “Null and Void” at no cost to myself? 

Landlords Answer:-

Lease hand back

26. What happens if I hand the Lease back to the Pub Co?

Landlords Answer:-

 

We will add more Questions to the list as further problems are reported.

Click on this LINK for our thoughts on Answers to the Questions above, so that you may be able ask suitably direct questions and get answers that you understand. 

Editorial Note:- It would appear that certain Pub Co’s are fighting legally to block the Market Rent Option (MRO), and an attempt to keep the Status Quo before the New Legislation came in, it is vital that you get definitive answers to all the above questions without exception, the comment about evasive or unanswered questions is even more relevant.

We can no longer recommend anyone taking a Tied Lease until total clarity has been established within the New Legislation, in our opinion.

 

Please note, access to this site is totally free if you would like to subscribe (No Charge) on www.buyingapub.com, they are free to be read for your guidance and aimed to help you get through a time of considerable pressure and demand.

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