LEASE AGREEMENTS
The flexibility of our approach to running a tenanted pub sets us apart from many other pub companies.
You and your pub are unique. We know that one size won’t fit all, and this is reflected in our flexible commercial arrangements with licensees.
We have two core agreements, the Admiral Tenancy Agreement and the Admiral Lease, along with our additional Business Support Agreement. Our experienced team will strike a supportive commercial deal that is right for you and the pub so that together we can benefit from developing a strong, sustainable business.
BUSINESS SUPPORT AGREEMENT
The Admiral Business Support Agreement (BSA) is a short-term agreement which sets new licensees on the path to success. It is excluded from the security of tenure provisions of the Landlord and Tenant Act 1954 and is designed as an introduction and forerunner into a more substantive agreement.
During course of the BSA your Business Development Manager and the Admiral team will work closely with you. The agreement provides the support you need to establish good financial and operational habits from day one. The BSA includes:
- Guidance on business planning and profit and loss management
- Business accountancy and stock taking services
- A bespoke training package
- BII membership / FLVA Membership
- Bespoke commercial support
- Subject to compliance with the BSA, Admiral will pay for half of the accountancy and stock taking services for the duration of the BSA to give your business the best opportunity of being successful. The agreement is fully tied, non-assignable and for a fixed term only
TENANCY AGREEMENTS
For new licensees, this is usually a fixed five-year tenancy agreement. It may not be assigned and is excluded from the security of tenure provisions of the LTA 1954, which means there is no automatic right to renewal. The rent may be increased or decreased annually on each anniversary date based on indexation, which we measure using the Retail Price Index.
There is no open market rent review within the Admiral Tenancy agreements.
Given the shorter term of the Admiral Tenancy agreements your repairing obligations are less onerous than the Admiral Lease and while you’re not responsible for structural defects, you are responsible for internal repair and decoration. A summary of your repairing obligations is set out in the paperwork. For new tenancy agreements, a Schedule of Condition will be provided to highlight the condition of the property in advance of you preparing your business plan.
The Admiral Tenancy agreement is also available with a break option for both parties (normally three or six months) and your BDM will be able to discuss this with you. Such agreements will be excluded from the security of tenure provisions of the LTA 1954 and although there is no automatic right to renewal, we will write to you at least six months before the expiry of your agreement to advise that the agreement will expire, and your BDM will be in touch to discuss available options.
LEASE
The Admiral Lease is designed to encourage greater lessee investment by offering more security and flexibility.
- Lessees can develop the business over a longer period and create capital value
- Lessees can set the term to suit their business plans in blocks of five years from 10 to 30 years
The Admiral Lease is not usually excluded from the security of tenure provisions of Part 2 of the Landlord and Tenant Act 1954 (the LTA 1954). Rents may increase or decrease annually on the anniversary date in line with inflation, which we measure by reference to the Retail Price Index. In addition, rents are also separately reviewed every fifth year of the term to an open market rental.
Under the terms of the standard Admiral Lease, you are required to put and keep the whole of the property in good repair and condition. So, it’s important that you are fully aware of the condition of the property at outset. To assist with this, for all new leases, we provide you with a current Schedule of Condition which reveals the condition of the property at that time.