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Ten year Business Development Lease
The Business Development Lease (10yr) is ideal for lessees looking for a longer period of tenure who may wish to invest their own capital into the development and refurbishment of the pub and redecorate externally on their own advanced cycle in order to enhance the business.
It falls with the Landlord & Tenant Act 1954 (excluding Scotland) and all licensees have the protection afforded by that Act.
The main points of this agreement are laid out below:
Time period: 10 years
Key benefits:
- You can sell on (assign) your business after 12 months.
- A barrelage discount scheme is in place offering competitive discounts per composite barrel on qualifying beers and ciders at the point of purchase from our nominated suppliers.
- There is no obligation to buy Wines, Spirits or Soft Drinks and these may be purchased from the supplier of your choice.
- The lease may be charged, that is to raise funds with a Bank or Building Society, for reinvestment into the structure of the property as part of a business development project. (Not applicable in Scotland)
The rent
This is an open market rent which reflects the provisions within the lease agreement. It will increase annually in line with the Retail Price Index (1st October) and is reviewed every five years.
Brands on the bar
The lessee is obliged to purchase (commonly referred to as the tie) all draught and packaged beers, cider, perry and flavoured alcopops from the company or its nominated suppliers.
Responsibility for repairs
The lease is a full repairing and insuring lease, meaning the lessee takes on responsibility for putting the property as a whole in repair and keeping it in good repair.
Insurance
An insurance rent will be charged by the company as a monthly rent.
Machines
Income from all AWP/Pool/Multimedia machines is split 50/50 between the lessee and the company.
