Buying a pub abroad

With floods sweeping the country and pub cellars getting submerged under a deluge of rainwater, you might be tempted into considering a move to sunnier climes.

Other European countries experience warmer summers than the UK, with temperatures in key cities such as Paris, Madrid and Berlin several degrees higher than those of London.

When it comes to creating a pub atmosphere abroad, however, you should choose your market carefully. Christie + Co director Jeremy Hill, who set up the firm's first European offices, says it's a good time to buy in France, Spain and Germany.

"There's an argument that Spain has peaked, but that has been going on for about three years," he says. "France and Spain are big leisure markets but Germany less so. There are some parts of Germany that are untapped, though, so there may be value opportunities there."

Jeremy says these markets are less mature and transparent than the UK, so it's more difficult to compare property prices. He advises: "Try and find comparables and negotiate price. See whether people are flexible on price. Some of the asking prices quoted are aspirational rather than reality."

Go in person​

Hill also believes it's worth getting out and about to assess the market for yourself. "Physically go and look at a number of businesses and use your initiative to see what's good and what's bad," he says.

Those sunny skies might be more tempting than traditional British weather, but don't be seduced by the heat. Where possible, try and look at properties in bad weather too.

"You could argue that you don't want to be looking at it when the sun's shining, because everything looks better in the sun. Maybe you should be looking at it on a rainy day in November," Hill suggests.

Don't get carried away​

Timescale for a property purchase abroad is two or three months from sending a deposit to settling the balance, according to Will Collins, foreign exchange dealer for financial services company Baydonhill.

He has the following advice on currency exchange rates: "Book a rate in advance. If the rate is good enough, fix yourself a price so you know what you're paying for your property.

"Make sure you know what you're going to get, get something in writing before you give someone freedom to invest into the exchange rate."

He also advises opening a bank account near the area you are buying in, so if it's a long process you can buy your euros and send them across without going through an agent or notary.

Wells & Young's - The John Bull Pub Franchise​

If you don't want to go it alone, there is another option. Wells & Young's Brewing Company has 18 pubs operating under the John Bull franchise, in places as far flung as Hungary, Poland and France.

By becoming part of the franchise you gain access to:

- Site survey, layout plans and optional design drawings

- Training for management and staff

- An operations manual

- The support of a group head office

- Exclusivity in your designated location

- A range of Wells & Young's beers

- Pub installation by British craftsmen

- Low/no interest fully-secured loans subject to status.

Countries to consider ​

Spain ​

You make a promise to purchase then deposit a down payment, known as 'arras', (normally 10 per cent of the asking price) and forfeit the sum if you don't go ahead with the deal. The transaction is then completed by executing a 'notarial deed of purchase and sale' - 'escritura publica de compraventa' - which also qualifies as a form of effective transfer of the property.

France​

These are mainly leasehold properties with an annual lease with the landlord for nine years.

Every three years the landlord can increase your rent, or you can leave.

When purchasing a freehold property, a 'promesse de vente' is signed, binding both parties for a certain time, and 10 per cent of the total sale price is typically taken as a deposit. The buying process takes three or four months.

Germany​

Markus Beike, Christie + Co managing director in Germany, says: "Typically, in the city, pubs are in buildings which are owned by breweries. What you can do is buy the leasehold interest of pubs, and there are a small number of cases where you buy the property."

Beike says the best thing to do is find a pub you'd like to run and contact the brewery.

"If the lease is expiring, you should talk to the lessee and they can introduce you to the landlord. If the pub is closed, you should find the owner and talk to them directly."