Peachtree tests water with 80-year leases

A new pub company is to trial an 80-year free-of-tie assignable lease on two pubs in East Anglia. The pair ­ the Sibton White Horse, near...

A new pub company is to trial an 80-year free-of-tie assignable lease on two pubs in East Anglia.

The pair ­ the Sibton White Horse, near Saxmundham, and the Swan Inn at Fressingfield, Eye, both located in Suffolk ­ are being offered by Peachtree Leisure for premiums of £350,000 and £290,000 respectively.

Rent will be £20,000pa for the White Horse and £15,000pa for the Swan Inn. Peachtree's agent Rupert Kelton, of Howard Day Associates, said: "With freehold prices so high and pubco leases under scrutiny, this offers the publican or restaurateur a happy medium that is affordable.

"For tenants who are disgruntled with tied leases this is a good way of acquiring an asset that can be sold or passed down the generations without the hassle of a lease renewal after 20 or 25 years.

"The substantial premium reflects the length of lease term. Rent reviews will be five-yearly and linked to 50% of the rental value on the open market."

One of the founders of Peachtree, Richard Chessells is a former area manager for London brewer Young's. "We are hopeful these offerings will be well received by the sector," he said.