Community leases a step closer

Pub is the Hub is in talks with major pubcos about devising leases specifically for community groups to take on viable pubs that are under threat.

It could involve lower rents in the initial stages and greater trading support for the communities.

Mike Clayton, pictured right, former MD of Jennings Brothers, who is now an advisor to the rural pub regeneration scheme, said: "In some circumstances, communities instinctively say we must buy the pub.

"But we are saying you don't have to find the capital to buy it if you can take on some sort of lease agreement. Obviously, it depends on the terms of the lease and the rent."

Clayton said he's been in discussions with pub companies about the idea for outlets that are viable.

"The pubcos we have asked say they don't have a problem in principle, but they'll look at each situation on its own merits."

Clayton said it could be a "win, win" situation for community and pubco, which may face the more costly option of finding temporary management.

And the interest created by community ownership can often make an unviable pub viable, Clayton added.

He said discussions with pubcos are at an "early stage".

Pubs that have been helped​

However, Pub is the Hub has helped negotiate leases for community groups at private or regional brewery-owned pubs in recent years.

This includes the New Inn at Shipton Gorge, Dorset, owned by local brewery Palmers.

Eddie Buck, chairman of the not-for-profit company New Inn Support that holds the lease, said: "No way could we have found the money to buy the freehold as a community.

"A lease was the only option and the brewery has been very reasonable with us."

Villagers rallied to open the pub after it closed in 2005, setting up New Inn Support to raise funds and secure grants. A total of £40,000 was raised: £27,750 from the community, £12,000 from the Government department DEFRA, plus £250 from the Community Pubs Foundation.

The figure was way below what was needed to buy the freehold, so the villagers approached Palmers. A six-year lease was agreed in 2006 for nil premium, with rent paid in advance.

This meant the £40,000 could be spent on major refurbishment work such as fitting new toilets and a dining area, rather than buying the freehold.

Day-to-day running of the pub is handled by licensees Gary Pellow and Sandra Tyson, who are paid a proportion of the takings.