Freehold discount for ex-Punch host

A former Punch tenant who bought his pub's freehold managed to negotiate a 20% discount off the asking price.

Dean Pearsall, of Saltwells Inn, Brierley Hill, Dudley, is one of the first Punch hosts to discuss his experience of buying his pub outright since the pubco offered all its tenants the chance to buy their freeholds. He said: "I've been very lucky and done very well."

Though unwilling to disclose exact figures, Pearsall said he managed to negotiate a fifth off the initial price sought by Punch for the pub's freehold, and those of the four cottages in the grounds.

He worked with Acorn Commerical Finance to secure funding. He said: "I put in an offer by 6 February. I had been dealing with Punch directly, but then King Sturge took over and I was able to negotiate.

"My second offer was accepted verbally. Everything was completed by 3 April."

Pearsall is "looking forward to negotiating discounts with suppliers" and already has a deal on building insurance, costing a quarter less than what he was paying. "My mortgage payments are less than my rent — that was £34,500."

Pearsall said he thought that his lease, an old Banks's lease with favourable terms, had saved him money on the purchase.

"It meant the pub company [Punch] didn't make a fortune out of me, and were quite happy to let me go."