Tenants warned to insist on written agreements with pubcos

Tenants and lessees have been warned that they could lose their businesses if they do not insist on a written agreement with pub operators.

The warning follows a case in the West Midlands where a licensee spent £20,000 refurbishing her pub only to be told she would have to move out.

Nuala Campbell, who has been in the trade for more than 30 years, moved into the Elmtree Arms in Kinver, Stourbridge, in March this year.

She was given a temporary tenancy but claims she was verbally promised a 10-year lease by Inn Partnerships and began work on the outlet accordingly.

But the company subsequently contacted her and said the Elmtree Arms had been sold.

Because there was no written agreement stating that Ms Campbell was entitled to a 10-year agreement, she may find it difficult to challenge the move.

"I've spent around £20,000 on this pub, refurbishing it and sorting out the garden," Ms Campbell said. "Then just out of the blue Inn Partnership says it has sold the property."

Suzanne James of London solicitors Joelson Wilson warned that licensees should always make sure they secure a written agreement even if it is just a signed piece of paper.

"We always recommend that something is put down in writing. It's very difficult to tell at the end of the day who would win this case as it's one person's word against another," she said.

Inn Partnership business development manager Richard Smith confirmed that Ms Campbell had never been offered a 10-year lease in writing.

"The company has made a commercial decision to sell the property," he said. "I can't tell you whether she was offered a 10-year lease verbally because I haven't been working for the company that long. But she was never offered a 10-year lease in writing."