Camra earns rebuff

A property chief has rejected calls by the Campaign for Real Ale (Camra) for more legislation to be introduced to prevent pub demolitions or conversion to shops, cafés or restaurants without planning permission.

The consumer group said that 57 pubs are closing a month, with 31% being demolished, 36% converted into shops, cafés and restaurants, and 31% being converted to domestic use.

But Mark Greig, managing director of Paramount Investments, said that people looking to get out of the trade or retire have a right to cut their losses and get the best price possible - even if it means losing the pub.

He said: "If the pub was a successful business, then the seller would make more money selling it as a pub. This approach will make for a much healthier industry - there are simply too many pub in some parts of the UK."

David Morgan, managing director of agent Cookseys DMP, said that there was already a lot of legislation in place to protect pubs. "If you're going to change the use of a pub, you've got to go through the planning guidelines for shutting the place down," he said. "There are many criteria, but the two most important are that you prove the business is not viable, and that you show it isn't a used social centre. This means that it is very difficult to shut a successful pub."

Greig said: "While we sympathise with the sentiment behind Camra's proposals, they would depress pub prices and create more red tape. One of the things that makes pubs a good investment right now is that they can be converted to other commercial uses without the need to apply for planning permission."

The Agents

Louise Hooper

Agent

Cowling Commercial

While quality leasehold pubs are still selling, it is imperative, in order to achieve the best possible price, that good

accounts are available to prospective purchasers.

During the housing boom a couple of years ago, leasehold pubs were going for "premium prices", partly due to the high equity gains purchasers had made in the residential market.

The market has now changed quite dramatically, and with ongoing reports of a "credit crunch" affecting global markets, it is proving more and more difficult to fund leasehold pubs and businesses. Setting a realistic and achievable price for a leasehold pub will hopefully keep you ahead of the market. Having said that, it has just been announced in the budget that the Small Firms Business Loan scheme has now been set back in place, which should make funding leases more viable.

With spring a traditionally good time to sell, a large number of leasehold pubs are currently coming on to the market, which gives buyers more choice.

In addition, with several pub companies issuing new lease opportunities, this gives prospective lessees the advantage of not having to pay premiums for goodwill.

In conclusion, it is now more important than ever to ensure that leasehold prices are accurate, and that good accounts are available to prospective purchasers, before going to the market. The correct advertising and marketing advice should provide you with the best current market price within a

reasonable timescale.

The Jug & Glass

Lea

Derbyshire

Price: £120,000

Tenure: Leasehold, 13 years remaining

Landlord: Private,

free-of-tie

Turnover: £227,000

Rent: £44,000

Wet:dry: accommodation split: 50:32:18

Agent: Guy Simmonds

01332 865112

This pub, located close to the town of Matlock and the countryside of the Peak District, is said to be a quintessential village inn. The premises, described by the agent as "stunning and characterful", include lounge seating for 70, a restaurant area with open fireplaces for 40, five en-suite letting bedrooms and owners' accommodation. The free-of-tie lease was originally created and sold by Guy Simmonds in 2005 and the agent said that the current lessees have enjoyed a highly lucrative business.

The Rising Sun

West Bagborough

Somerset

Price: £895,000

Tenure: Freehold

Turnover: £300,000 (projected)

Wet:dry split: 70:30

Agent: Cowling Commercial

01271 375 555

Located in the Quantocks and on the edge of Exmoor National Park, this property is set in an area of outstanding natural beauty. The pub comprises a main bar with flagstone floors, beamed ceilings and a feature fireplace, a piano room, snug area and restaurant. There is a separate three-bedroom owners' cottage with garden and car park. The sellers have recently built a website and the agent said that this has improved sales.

The Fitzhead Inn

Fitzhead

Somerset

Price: £485,000

Tenure: Freehold

Turnover: Undisclosed

Wet:dry:accommodation split: 33:33:33

Agent: Stonesmith

01392 201 262

This food-led pub is close to the town of Taunton in the centre of Fitzhead, a small village. It is run by a small family team and the agent advises that, with a larger staff, the pub could open longer and significantly boost turnover. The site has an open-plan bar/40-cover restaurant with a feature fireplace, beamed ceilings and part-panelled walls. Below ground there is a cellar/beer store. There are seven letting rooms, while private accommodation provides a lounge and two en-suite bedrooms.

The Dukes Head Hotel

Beare Green

Surrey

Price: £75,000

Tenure: Leasehold,

22 years remaining

Landlord: Punch Taverns

Turnover: £4,800

Rent: £47,668

Wet:dry split: 80:20

Agent: Howard Day Associates 0207 297 2033

This pub is five miles south of Dorking and described by the agent as a attractive country inn in a prominent trading position. The trading accommodation is split between three areas, a village bar, dining area with 40 covers and a sports bar with pool table, wide screen TV and darts. Upstairs the pub offers 10 en-suite letting rooms, plus room for a housekeeper. Outside is a detached cottage with four-bedroom owners' accommodation.