Buying a pub or bar?

A well-run pub or bar at the heart of its community is a compelling business to buy. The wet and dry trade, the premises themselves, and the goodwill of generations of regulars can all carry real value — and whether the deal is a freehold free house, a leasehold tenancy, or a managed house, the funding structure needs to reflect what is actually being acquired and on what terms. Specialist lenders with genuine licensed premises appetite understand the difference and structure the funding accordingly.

What lenders look at

Wet and dry trade split and weekly turnover are the foundation. Lenders will examine the weekly turnover across wet trade — draught and packaged drinks — and dry trade — food, accommodation, and any other non-alcohol income. A pub generating a healthy split between wet and dry trade is a more resilient proposition than one dependent entirely on drink sales. Food income in particular strengthens the application — it extends the trading day, increases dwell time, and attracts a broader customer demographic. Weekly takings are verified from till data, bank statements, and VAT returns — lenders assess the full trading picture rather than relying solely on the year-end accounts.

The tenure and tie agreement are assessed as critical structural factors. Whether the pub is a freehold free house, a leasehold tenancy, or a managed house fundamentally affects the funding structure. A freehold free house — with no tie to a pubco or brewery — provides maximum commercial freedom and the property itself as security, making it the most fundable pub acquisition type. A leasehold tenancy tied to a pubco or brewery is assessed on the remaining lease term, the tie terms, the rent, and the level of the rent-to-turnover ratio. Tied tenancies with onerous tie terms or high rents relative to turnover are assessed more cautiously than free-of-tie arrangements.

The premises licence and compliance history are reviewed carefully. A full premises licence with a clean compliance history — no reviews, warnings, or conditions imposed by the licensing authority — is a significant asset that lenders assess alongside the trading figures. Any licence conditions, noise abatement notices, or historic compliance issues need to be disclosed and addressed in the application. The incoming owner must be approved as a designated premises supervisor by the licensing authority before trading with alcohol — lenders familiar with pub acquisitions understand this process and factor the timeline into the deal structure.

The property condition and any wet lease or dilapidations obligations are assessed as part of the overall deal. Pub properties — particularly tied tenancies — often carry scheduled maintenance obligations, dilapidations liabilities at lease end, and wet lease requirements for draught equipment. Lenders will want to understand the property condition, any outstanding maintenance obligations, and the terms of any equipment agreements — particularly cellar equipment, EPOS systems, and gaming machines — that form part of the overall operating structure.

How we help

We are acquisition finance and loans brokers, not lenders. We package your application, present it to the funders with genuine licensed premises appetite, and manage the process from first conversation through to completion.

We also arrange government-backed facilities for pub and bar acquisitions — helping buyers access up to £2 million toward their purchase where the criteria are met.

Every pub acquisition is different. Tell us about the business. We will take it from there.