The British pub has been an institution under threat for quite some time as a result of several legislative, social and economic trends that collectively squeezed industry margins and revenue. Over the last few years, the sector has seen a wide range of structural changes. Throughout the late 90s and early 2000s, we saw an increase in consolidation as breweries and companies integrated their operations in order to achieve economies of scale. However, the turbulent conditions of recent times have forced many owners to offload their assets, which has led to companies implementing better pub management policies. The upshot is that the industry is seeing a positive turnaround and it is forecast to return to growth over the five years as companies and establishments adapt to consumer trends.
When you buy a pub, you do not just purchase a building. A pub is a comprehensive business entity that includes the license, internal features, fixtures and fittings and more. We specialise in professional mortgage and pub funding solutions that cover every element. As with all commercial loans, the terms for a loan against a public house will differ between lenders but in general you can expect a 15-20 year mortgage term for a freehold business. We are also able to offer a pub loan for leasehold businesses to cover a short term lease that can be extended to suit your requirements. You can opt for anywhere between 5 to 30 year mortgage terms and typically most lenders will advance up to 50% of the comprehensive lease and incoming costs unless you can provide an asset such as a residential property as additional security.
We have experience in offering financial solutions for the purchase of public houses and re-mortgages. We also provide support with cash injections across the industry, consolidation of debts and the raising of capital for the purpose of business improvement and enhancement. We are fully equipped to offer focused financial assistance and we strive to secure the most competitive pub mortgage rates for our clients. Contact us now for advice on pub, hotel, marine and equestrian finance and we will provide the support and help you need.