A guide to our agreements | 37A guide to our agreements | 36
You will be responsible for all other
repairs (including the surface coverings
of the main structure) and day to day
maintenance, including drains, xtures
and ttings all pipes, toilets and sanitary
equipment and to keep all car parks,
access ways, gardens, play areas,
landscaping or other unbuilt upon
areas safe for public access, properly
lit, surfaced or cultivated, clean and tidy
and free from weeds.
Redecoration You must redecorate the
interior and exterior of the property in
an agreed initial decoration year and
thereafter as often as is required or at least
every 3 years and in the last 6 months of
the term if we reasonably require.
Alterations You may not carry out any
structural alterations but may carry
out non-structural alterations with our
permission. We may ask You to reinstate
these at the end of the term.
Signage You must maintain all signs and
lights. You may not alter the signage
without our prior consent.
Repairs and Maintenance Fund You will
contribute to a repair & maintenance
fund and You may draw down from that
fund for the purposes of complying with
your repairing obligations or we may
do so if we carry out repairs for which
You are responsible. The balance of the
account will be repaid to You when You
leave the pub if it is in good repair and
all other accounts are up-to-date.
Service Charges We will deal with
compliance testing (but not remedial
works) for health & safety, lifting
equipment and gas & electrical safety
in exchange for a service charge paid
to us weekly in addition to your rent.
The initial charge is currently £1,273.75
plus VAT per annum. That initial charge
may be subject to review at any time,
based on the actual cost to us of
providing these services. If You opt to
join our group servicing scheme for the
maintenance of the heating system and
cellar cooling equipment You will pay
a maintenance service charge which is
currently £602.23 plus VAT per annum
for the cellar cooling maintenance and
currently £906.91 plus VAT per annum
for the heating system maintenance.
Accounts and Stocktaking All lessees
are required to ensure that they instruct
appropriate third-party accounting
and stocktaking services from properly
qualied suppliers. Upon request, you
will be obliged to provide to us copies of
any documentation that they prepare for
you as a result of them carrying out these
services in respect of the business. The
cost of these services will be payable by
you direct to the service provider.
9. VARIATIONS CONSEQUENT ON
RELEASE OF TERMS OF TRADING
If the terms of trading become wholly
or partially unenforceable then we may
conduct an open market review of the
Rent and it will be conducted on an
upwards only basis.
10. ASSIGNMENT
The Lease may be assigned after the
end of the rst two years.
You must obtain our consent to any
assignment and we will have the right
to act as a substitute purchaser of the
Lease if we so require at that time.
Any assignee must satisfy us that they
are t and proper and have adequate
experience to run the business. They will
be required to produce a business plan
together with proof of funding and pay
a rent deposit. They will be required to
attend an appropriate training course
and to take appropriate professional
advice. Subject to being satised in these
respects and subject to us not wishing to
purchase the Lease ourselves, we will not
unreasonably withhold consent.
Future Liability You will be required
to enter into an authorised guarantee
agreement on assignment to guarantee
the obligations of your assignee under
the Lease.
Mortgages You may charge the Lease to
a reputable bank with our consent but
You may not charge the trade inventory.
11. TRAINING
We require You to complete Our
Elearning training modules which are
accessed via our applicant channel and
attend the BIIAB Award in Beer and
Cellar Quality course.
12. PREMISES AND PERSONAL
LICENCES
Unless we request otherwise You must
obtain by transfer or otherwise and hold
throughout the Term a Premises Licence
for the premises. You must also hold a
Personal Licence and be named as the
Designated Premises Supervisor (DPS)
for the Premises, unless we consent to
some other person being the DPS.
13. GUARANTORS
We will ask corporate tenants to
provide personal guarantees from
two of its directors.
14. LEGAL & OTHER PROFESSIONAL
ADVICE
You must receive independent
professional advice in advance of
preparing Your business plan. Before
entering into a Lease You should receive
further independent professional advice
about all its terms. Before completion You
would need to demonstrate You have
taken further independent professional
advice or conrm in writing Your decision
not to do so despite our recommendation.
All Stonegate Pub Partners Leases
have repairing obligations which are
“put and keep” in nature. This means
that the property’s condition at the
commencement of the Lease is effectively
disregarded when applying the repairing
obligations. It is therefore important that
You understand the condition of the
property at the outset and the obligations
that You are entering into.
In all cases we recommend that You
commission your own independent
building survey and take specialist
advice before entering into a Lease
which contains repairing obligations.
This Summary of Terms is provided for guidance
only. In the event of any inconsistency between this
Summary of Terms, and the current form of legal
documentation, the latter shall prevail. Subject to
Contract and formal Tenancy Agreement.
Version 5 – Mar 2021
for Lease) the new Lease when head-
landlord’s consent is obtained or
when the works are completed. The
commencement date of the Lease will
be the Commencement Date of the
Agreement for Lease.
3. THE RENT
Rent Rent will be agreed by negotiation,
having regard to the potential
protability of the business and taking
into account all of the terms of the Lease
save for the Incentive Payment which
has no bearing on the rental assessment.
Payment Rent, including VAT, is paid
weekly in advance by Direct Debit
or such other means as we may
specify. We reserve the right to make
administration charges if payments are
not made by Direct Debit.
Outgoings You will be responsible for all
rates and all other outgoings including
but not limited to all utilities and You
must notify all suppliers of tenancy
change on commencement of Lease.
Deposit A cash deposit equivalent
to 3 months’ rent is required on
commencement of the Lease. Interest is
payable on the deposit.
Further monies may be required in order
to obtain credit on trading terms.
Open Market Rent Review An open
market rent review is scheduled to
be conducted on or around the fth
anniversary of the Term and so long as
the Lease remains tied then the rent can
be adjusted upwards or downwards.
However, as an alternative to an open
market rent review you will have the
option, subject to time conditions being
met, to settle the review by completing
a memorandum of rent review on the
basis of Annual Indexation. We are able
to call for an upwards only open market
rent review in the event that the agreed
trading tie ceases in its entirety.
Annual Indexation Except on the fth
anniversary when there is an open
market review, so long as the Lease
is tied the rent is adjusted upwards
or downwards at or around each
anniversary of the start date in line with
the Consumer Price Index House (CPIH).
If the agreed trading tie ceases in its
entirety then indexation adjustments are
upwards only.
Exclusions The value of your approved
voluntary improvements to the building,
your exceptional goodwill and also the
benet of the incentive payments are
excluded from any rent reviews.
4. PERMITTED USE
The premises may be used as a fully
licensed public house for the retail
sale of alcoholic and non-alcoholic
drinks and the ancillary provision
of accommodation, food and other
refreshment.
5. INSURANCE
Landlord We will arrange insurance
for the building and for two years loss
of rent and recharges. Our insurance
costs will be recharged to You weekly in
advance together with VAT.
Tenants You will be required to arrange
cover for the contents including trade
inventory, stock, all xed glass, the
premises licence and employer’s liability.
You must also insure against third
party and public liability, loss caused by
interruption to the business and any loss
of money.
6. TERMS OF TRADING
Trading Tie The extent of the trading
tie is a matter for negotiation at the
start of the Lease. A “full wet tie”
would require You to purchase from us
all beers, including cask conditioned
and low alcohol or no alcohol ales, all
lagers, all ciders, all avoured alcoholic
beverages, all wines, all spirits and
all minerals whether in draught or
packaged forms. You can, however,
choose to be free of tie on some or all of
the following categories: one guest cask
conditioned beer sourced from a SIBA
brewer and dispensed from one hand
pump, avoured alcoholic beverages,
wines, spirits or minerals in exchange for
payment of an annual Tie Release fee for
each category released. You can serve 3
months written notice to cancel one or
more Tie Release Fee at any time.
Payment Payment for tied products
ordered from your price list will usually
be collected on the Rent Day in the next
week following your delivery by way of
Direct Debit.
Price List The price list and any discount
structure agreed at the outset will
continue throughout the term subject
to our entitlement to update prices and
any applicable off invoice discounts and
qualifying products from time to time.
Gaming and Amusements Machines
Unless otherwise stated in our letting
particulars there is a prohibition against
bringing gaming and amusement
machines on to the premises. We may
consent to the installation of such
equipment and if so the terms of any
consent will be dealt with in a machine
consent letter.
Annual Release Fees If any aspect
of the “full wet tie” is released, this
arrangement will continue for the
duration of the Lease unless cancelled
by you on 3 months’ notice, subject to
the payment of Annual Release Fees.
These fees will be xed at an agreed
amount, subject to annual indexation
in line with the Consumer Price Index
House (CPIH) and payable weekly
alongside your rent.
Beer Dispense Equipment Dispense
equipment is provided by the nominated
suppliers and is maintained and owned
by them. Cellar cooling equipment is
your responsibility and so long as the
Lease is tied You may opt to join our
group servicing scheme to cover this.
Flow Monitoring Equipment You must
allow us or if relevant our agents,
access to the Premises to install and
inspect and maintain Flow Monitoring
Equipment and to use your electricity
supply at your cost to operate the
equipment.
Disclosure You will be required to
provide copies of your VAT returns &
annual accounts upon request.
7. FIXTURES AND FITTINGS
Tenant You must purchase the loose
trade inventory at valuation and You
must repair and replace these items as
necessary during the term. We may
purchase the trade inventory at valuation
during or at the end of the Term and
offset the value against any money You
may owe. You may not sell or charge
the inventory to any third party and You
must sell the inventory to any authorised
assignee of the Lease.
Landlord Landlord’s xtures and ttings
remain in our ownership throughout
the Term. You must repair, maintain and
replace all xtures & ttings during the
Term.
8. REPAIRS
Structural Repairs Subject to the
provisions of the Lease We are
responsible for repairs to the main
structure which We reasonably believe
are required to protect the structural
integrity of the property. You are
responsible for notifying Us as soon
as You become aware of any required
repairs in order that we can both
mitigate against further consequential
damage.
Non-Structural Repairs You will
be responsible for the repair and
maintenance of the whole property but
not the structural parts which We are
responsible for pursuant to the terms of
the Lease.