Freehold Bar Startup Advice

[L Warbey]

I'm posting here because i've spent hours browsing through forums and various websites looking for answers to my questions and I just can't find them. Some of the questions I have may be pretty basic, but none the less, I still want to know answers before I commit myself to anything.

To give you a background to what I want to achieve, the leasehold for a bar local to me has just become available (I found out that the previous leaseholder was not paying his bills). I am looking into the different options, I'm not going to discuss the cost of buying the leasehold here as I'm sure that will just raise questions as to raising funds, which I am obviously aware is an issue, and one that I have some idea on, and if I have any questions about I will post a separate thread regarding that.

To make this easy I'm just going to list all the questions I have no if anyone can answer any or even all of them I would be very grateful.

-Do you need to have a LTD company to buy a freehold?
-How does the process of registering a LTD company work if you do need to?
-As the leaseholder do you have complete control in regards to what happens in the building? (I don't mean can I knock the place down, I mean can I make changes to the decor and superficial things like that)
-How much rent should I expect to pay upfront?
-Who does the money from the purchase of the leasehold go to?
-What happens if I want to 'sell-up' before the end of the lease?
-How does SAV work, I know it'll work in my favour to buy it, but is the price negotiable or is it worked out from supplier prices and fixed?
-How much should I expect to pay in fees throughout the process of the purchase and what for?
-As the bar includes accommodation, would I be able to rent this out? If I do then does the money from this go to me or the owner of the building?
-Would I also be buying the internet presence, such as the website and the Facebook page, which already have a fair amount of traffic?

I apologise if those questions seem very mixed around, but any help with any of them would be great.

 

[Mark T Jones]

I'm posting here because i've spent hours browsing through forums and various websites looking for answers to my questions and I just can't find them. Some of the questions I have may be pretty basic, but none the less, I still want to know answers before I commit myself to anything.

To give you a background to what I want to achieve, the leasehold for a bar local to me has just become available (I found out that the previous leaseholder was not paying his bills). I am looking into the different options, I'm not going to discuss the cost of buying the leasehold here as I'm sure that will just raise questions as to raising funds, which I am obviously aware is an issue, and one that I have some idea on, and if I have any questions about I will post a separate thread regarding that.

To make this easy I'm just going to list all the questions I have no if anyone can answer any or even all of them I would be very grateful.

-Do you need to have a LTD company to buy a freehold? No
-How does the process of registering a LTD company work if you do need to? Easy Peasy - either direct at Companies House or use formation agent
-As the leaseholder do you have complete control in regards to what happens in the building? (I don't mean can I knock the place down, I mean can I make changes to the decor and superficial things like that) - Depends on lease terms
-How much rent should I expect to pay upfront? Negotiate.
-Who does the money from the purchase of the leasehold go to? The freeholder typically (or it might be a sub lease)
-What happens if I want to 'sell-up' before the end of the lease? You have to find a suitable purchaser
-How does SAV work, I know it'll work in my favour to buy it, but is the price negotiable or is it worked out from supplier prices and fixed? Normally a professional valuer on site
-How much should I expect to pay in fees throughout the process of the purchase and what for? Get good legal advice!
-As the bar includes accommodation, would I be able to rent this out? If I do then does the money from this go to me or the owner of the building? Normally to you - look at lease terms.
-Would I also be buying the internet presence, such as the website and the Facebook page, which already have a fair amount of traffic? Ask.

I apologise if those questions seem very mixed around, but any help with any of them would be great.

How much do you know about running a pub? It really is a high risk business

 

[Chris Ashdown]

These are very basic questions you are asking, which I think means you really need to read some books on running a business, to fully understand your commitment's to running a company

Most on here can answer your questions, but you really need a much better knowledge before you even think of going forward

Look at your local town hall who will point you to a local enterprise organisation who give free courses on running a business

I know this is not what you wanted to hear and I am not trying to belittle you or your plans, but just pointing out you need far more assistance than just answering these questions

 

[Chris Bennett]

I would say that my first question will be what do you know about running a pub, whether it's Tied or Free House?

Do you know what you need to get a licence to sell alcohol?

Have you seen the takings for said pub.

If you've never done this before I would seriously and speaking from experience give it a miss, not wanting to put your fire out. But if you're going in blind, it's not going to work. It takes a lot of hours to run a pub, early mornings and late nights. You know you've done a few days and yes you can get help from staff. Still hard work.

 

[Don Smith]

(I found out that the previous leaseholder was not paying his bills).

That's all you need to know. Your following questions show you are not in a position to change the above. Forget it.