Pubco's name on licence

QWe are lessees with a leading pub operating company, which is now telling us that it wishes to hold the premises licence in its own name in future, to provide for continuity. But it wants us to pay the legal costs of making the application, which are well over £1,000. Are we obliged to pay for this, as it will not even be in our name and we do not own the property? Can we make the application ourselves?

AI am sad that this type of question has come in at such a late stage. I have to say that this is the sort of issue that could have been sorted out well in advance of the transition period.

It is clear that either the operating company or the existing lessees are legally entitled to apply for conversion to a premises licence, both being involved in the carrying on of the business of the premises. However, the payment of the fees for the application and the legal costs is a contractual matter between the parties.

The sum you are quoting clearly covers both the actual licence fee and solicitors' costs. If you made the application yourself, without professional legal help, it would be considerably less. But I am reluctant to advise licensees to go it alone, unless they know exactly what they are doing, particularly with variation.

You should look at your lease to see which items are covered. It may be that there is a clause allowing the lessor to recoup legal costs from you. If there is not, then the issue is one for negotiation, as indeed you are being asked to pay for a licence that is not yours (but which you clearly need in order to continue trading).

There is also the point that your written consent is required on a specific form in order for the operating company to proceed with the application in its own name.

Consulting on alterations

QDoes the requirement to approve alterations now require application to the justices or to the local council, which has taken over licensing?

ACurrently, most of the 1964 Act continues to apply, so that, strictly speaking, prior approval for consent to alterations must be obtained from the licensing justices at one of their transfer sessions.

If you have already applied for conversion, however, you may need to amend the plan that you supplied to the council and to the police, to show the alteration as it will be when completed. All licensees and their advisers should think very carefully about how they are going to handle structural changes during this period, as considerable costs could be involved if plans have to be changed at a later stage, or a second variation of the licence is involved.

Half needn't be half price

QWe have been challenged on our pricing by a customer who says that the price of a half pint must by law be exactly half the full pint price. Is this right?

ANot if you make it entirely clear on your price list that there is a separate price for both drinks. You could not charge an inflated price for the half unless your price list made the unit cost clear, because customers would be misled if only the full pint price appeared.

Obviously, your actual pricing level is entirely a matter for you, but your main consideration should be not to mislead customers into thinking that a drink is less than it is, in fact,at the till.