Index-linked pub income with strong roadside profile — lease length may restrict lenders..
- Freehold pub let to Quality Inns group, rent £65,400 pa
- Lease term: 20 years from Sept 2022 (≈17 years remaining)
- Five-year open market reviews; annual uncapped RPI uplifts
- Prominent A435 roadside position, c.17,000 vehicles daily
- Indoor seating for 89; outdoor seating for 115; parking for 27
- EPC rating C-73
- Very slow broadband; excellent mobile signal
- Short lease remaining may limit lender finance availability
A freehold roadside public house let in its entirety to Quality Inns of Gloucestershire Limited, producing a current rent of £65,400 per annum. The 20-year lease started 15 September 2022 and provides five-year open market reviews plus annual uncapped RPI uplifts (except in review years). The tenant is part of an 18-pub group, and a rent deposit of £15,736 is held.
The property sits on a very large plot fronting the busy A435 (c. 17,000 daily vehicle movements) in a rural village setting, with parking for 27 cars and covered outdoor seating for up to 115 patrons. Internally the trading area seats 89, supported by trade kitchen, cellar and ancillary rooms; first-floor residential accommodation offers three double bedrooms, a living room, kitchen and bathroom with separate car-park access.
Strengths include a long-term occupational covenant, regular rent reviews with RPI linkage, prominent roadside position and substantial customer capacity. Material drawbacks are the remaining lease term (circa 17 years), which may restrict some lenders' mortgage finance, very slow broadband speeds and an EPC rating of C-73. The sale is envisaged as a TOGC for VAT purposes.
This offer will appeal to income-focused buyers seeking a rural pub investment with clear index-linked rent mechanics and an established tenant. Prospective purchasers should carry out covenant, lease and funding checks early due to the lease length and potential lender limitations.