Pub finance guides
Plain-English answers on buying, valuation, fair maintainable trade, tied vs free-of-tie, change of use and what lenders look for, from a specialist arranger.
Straight answers to the questions operators and buyers ask before they fund a pub. Written by Matt Lenzie, who has arranged more than £500 million of property and trading-business finance over 25 years. This is finance for the pub as a trading business.
Buying a freehold pub
Buying a freehold pub means buying a trading business as well as a building. This guide walks through the commercial mortgage process from offer to completion, how lenders size the loan and what it costs.
Read the guide → SectorTied versus free of tie
Whether a pub is tied to a pub company or free of tie changes how it trades, how it is valued and how a lender sees it. This guide explains the difference and what it means for finance.
Read the guide → ValuationHow a pub is valued
A pub is valued as a trading business, not just a building. Understanding fair maintainable trade, the operating profit it produces and the multiplier applied to it helps you price a deal and judge how much a lender will advance.
Read the guide → PlanningChange of use and permitted development for pubs
Changing what a pub building is used for, or converting it to homes, turns on planning law. This guide explains the former A4 use class, the move to Sui Generis, permitted development and how planning shapes the finance.
Read the guide → RefinanceRefinancing a pub
Refinancing a pub can lower your rate, release equity built up through stronger trade, or move a short-term bridge onto long-term debt. This guide explains when and how to refinance and what a lender will look for.
Read the guide → TaxStamp taxes on a pub purchase
Buying a pub triggers a stamp tax on the property element, charged at the non-residential rates across England, Scotland and Wales. This guide explains how the charge works, why the goodwill split matters and how it affects the cash you need at completion.
Read the guide → LeaseholdLeasehold pub finance
A leasehold pub is financeable, but on a narrower basis than a freehold. This guide explains how lease length, the tie and the terms shape the loan, and how a lease assignment works when you buy a leasehold pub.
Read the guide → DevelopmentMicrobrewery and brewpub funding
A microbrewery or brewpub blends manufacturing with the licensed trade, and the finance has to fund both the brewing kit and the bar. This guide explains how the funding works, what it costs and how a lender reads the business.
Read the guide → CommunitySaving a community pub
When a much-loved local is threatened with closure or conversion, communities have real tools to step in. This guide explains Assets of Community Value, community ownership and how finance can sit alongside community capital.
Read the guide → BorrowingDeposits, LTV and what lenders want
A pub loan turns on the deposit you can put in, the loan to value a lender will allow and the trade behind it. This guide sets out the deposit and LTV bands, the affordability test and exactly what a lender wants to see on a pub deal.
Read the guide →Got a pub in mind?
Send us the pub and the operator and we will come back with a view on fundability and likely terms within one working day.