Why are pubs cheap to buy?

roundthebend

This pub is in a nice village near where I live. It's not a tiny village so probably has a decent local trade, and it's quite well situated for passing trade and the city where I live is only 5-10 minutes drive so it is well located.

http://www.rightmove.co.uk/commercial-property-for-sale/property-57757547.html

It looks nice inside too and I know it has a big garden. And it has a 3 bed home included. For £20,000? What's the catch?

the_twin

You aren't buying it. Read the details.

chillidoggy

It's a 10-year lease, that's why.

roundthebend

£483 per week......missed that!

Paul_C

you're not buying the property, just the lease for 10 years, plus £500/week rent

that and you're no doubt tied to the owner of the pub in terms of buying beer and at prices they decide

Nitefly

You're only buying the lease for your £20k - it's a 10 year lease at £483 per week!

Handsome_Chris

I wonder how many year of the lease will the next 'owner' last?  Times are tough in this trade.

Chalky

Handsome_Chris;1118781" said:

I wonder how many year of the lease will the next 'owner' last?  Times are tough in this trade.

Average used to be 18-24 months but I suspect its lower now.

professorben

Buying a pub is very much like investing in Milk as a long term commodity.

WezV

Handsome_Chris;1118781" said:

I wonder how many year of the lease will the next 'owner' last?  Times are tough in this trade.

Its a declining market that's for sure, but there are clear areas of growth.

Country pubs have to offer good food and a family friendly atmosphere. The ones that do are rarely empty.

High-street pubs are doing really well. If I look at my own town centre we have had 6 new pubs in the last year. They are all going after the craft/real ale market. They have displaced trendier bars. 1 is a chain, 1 is pubco, 4 are independent. They are all constantly busy.


The local is still in major decline, and we only have ourselves to blame for that. If you want a local, go to it.