J T Davies & Sons Limited

 

PUBLIC HOUSE ESTATE

 

TENANCY Q&A

 

How long is a Tenancy Agreement?

Normally seven years.

 

Who pays the legal costs?

You must pay a share of the legal costs when the Agreement is produced plus the Court Registration costs.

 

Can the Tenancy Agreement be sold to a third party?

No.

 

What are 'estimated ingoings'?

The amount of money required to purchase the stock and fixtures and fittings.  It also includes the first month's rent.

 

Will you lend the money to me?

No.

 

How often is the rent paid?

Monthly in advance.

 

Will I have to pay VAT on the rent?

VAT is payable on 90% of the rent.

 

Will the rent increase?

There is an upwards rent review every five years.  All rents are subject to an annual increase based on the Retail Price Index.

 

Who pays the business rates and council tax?

You do.

 

Who pays the buildings insurance premium?

J T Davies & Sons Ltd insures the buildings and charges the premium to you.  You must insure the contents and business.

 

Who owns the fixtures and fittings?

You do.

 

What products must I buy from nominated suppliers?

All beers, lagers, ciders and alcopops.  You may purchase wines, spirits and soft drinks from an alternative supplier.

 

Who is responsible for the building repairs, ie main structure, internal items, electrics, plumbing, cellar cooling, sump pump, central heating, plate glass, fixtures and fittings (including glass washer etc)?

You are responsible for taking the house in its present condition and putting and maintaining it in good condition.

 

Who is responsible for the repair of dispense equipment?

Coors/Scot Co, InBev (Technical Services) but you must insure against its damage.

 

Who is responsible for cleaning/servicing and repairing the gutters, downpipes, drains, wc's, internal accommodation, electrics, plumbing, cellar cooling and sump pump, central heating, fixtures and fittings and dispense equipment?

You are.

 

Who is responsible for decorating?

You are responsible for all external and internal decorations and at least every five years must redecorate.  However, J T Davies & Sons Ltd currently redecorate the exterior and sign all their houses every five years.

 

Who receives the monies from gaming machines?

This is shared with J T Davies & Sons Ltd after the rent to the machine supplier has been paid.

 

Can parts of the building be sub-let, ie garage/out buildings etc?

No.

 

Are structural and non structural alterations permitted?

Yes, with our consent.

 

What approvals are required when altering the house and who is responsible for obtaining these?

Apart from our consent, various permissions may be required (eg Planning Permission and Building Regulations Approval).  J T Davies & Sons Ltd will always advise you as to what is required in each case.  You are responsible for obtaining these approvals, except in the case of joint investment where J T Davies & Sons Ltd takes full responsibility.

 

Will J T Davies & Sons Ltd help me to improve the property?

Joint investment is available whereby the company undertakes improvement works previously agreed with you and upon completion of the works a pre-agreed rent increase is then charged.

 

Will I be expected to make a financial contribution under this scheme?

You must finance a pre-agreed proportion of the cost, usually the inventory items.

 

Will J T Davies & Sons Ltd lend me the money for my contribution?

No.

 

Can I use these schemes to undertake my repairing obligations under the terms of the Tenancy Agreement?

No, they can only be used for genuine improvements rather than maintenance.