licensed premises
Special considerations apply to a tenant wanting to enter into a lease of licensed premises, particularly “wet-led” (pub or bar) retail leisure outlets as distinct from other leisure property (restaurants and hotels). The main points to note are:
- many licensed premises are owned by pub companies. They will often insist on using their own standard form of lease which might vary slightly, depending on the number of years a person wants to enter into the lease for.
- styles of lease can vary hugely from one pub owner to another. It pays to take advice from an experienced commercial property lawyer on the proposed terms of the lease.
- almost always, the pub company will insist on the pub tenant buying the pub owner’s supplies of beer and other drinks (commonly referred to as “the tie”), although most pub companies may allow the pub tenant some choice over what other products to sell
- the pub company will often share the takings from betting and amusement machines
- stringent licensing rules apply to businesses and individuals who sell alcohol – for full details, see our separate Licensing Unit service
- where pubs include residential accommodation, it is worth knowing that, unlike for other types of residential lease, residential accommodation tied to the licensed premises (for example, a flat above the bar) have very little security of possession. If the lease of the licensed premises ends, so too does the lease of the residential accommodation.