The L&T model is a traditional pub agreement that allows you to run your own pub business with the support of Star Pubs. All our L&T agreements are tied for beer, cider, alcopops and soft drinks but free of tie-on wine and spirits.
How much does it cost to take on a leased pub?
Every pub lease is different, so requires individual support and investment. Please see a guide below:
1. Foundation Tenancy – England and Wales (our standard agreement)
You have the freedom to set the pub's offer and you can manage your risk by having the option to break the agreement at any time with three months’ notice.
Contracted out of the Landlord and Tenant Act 1954, the agreement will come to an end after five years.
Key features:
- Five-year fixed term
- Rent is fixed for the full term
- We can terminate the agreement on three months’ notice if there are significant rent arrears or tie breaches
- You can terminate the agreement on three months' notice
- Reduced repair and maintenance obligations compared to FRI
Lease Agreement Template
It’s an important part of working with Star Pubs that all prospective licensees receive a copy of our template pub lease agreement.
Download the Foundation Tenancy England and Wales Template (295kb)
2. Foundation Tenancy – Scotland (our standard agreement)
You have the freedom to set the pub's offer and you can manage your risk by having the option to break the agreement at any time with three months’ notice.
The agreement will come to an end after three years.
Key features:
- Three-year fixed term
- Rent is fixed for the full term
- We can terminate the agreement on three months’ notice if there are significant rent arrears or tie breaches
- You can terminate the agreement on three months' notice
- Reduced repair and maintenance obligations compared to FRI
Lease Agreement Template
It’s an important part of working with Star Pubs that all prospective licensees receive a copy of our template pub lease agreement.
Download the Foundation Tenancy Scotland Template (295kb)
Search for Foundation Tenancy Properties
3. Investment Tenancy
This is used for pubs that we will significantly invest in and where a qualifying investment waiver is entered into as per Regulation 56 The Pubs Code etc. Regulations 2016..
As with the Foundation Tenancy, you have the freedom to set the pub's offer. It is covered by the Landlord and Tenant Act 1954, meaning that you have renewal rights at the end of the five-year term.
Key features:
- Five-year rolling term
- The agreement can only be ended once every five years on the anniversary of its start date. If no notice is served by either the Tenant or Landlord, it will “roll” for a further period of five years
- Rent is fixed for each five-year term
- Rent review every five years
- Reduced repair and maintenance obligation compared to FRI
Lease Agreement Template
It’s an important part of working with Star Pubs that all prospective licensees receive a copy of our template pub lease agreement.
Download the Investment Tenancy England and Wales Template (333kb)
Search for Investment Tenancy Properties
4. Fully Repairing and Insuring Lease (FRI)
Perfect for experienced licensees who want time to build up the value of their business and accrue the return on their investment with the added benefit of being able to sell their lease on should they choose to (known as ‘assign’). Fully protected under the Landlord and Tenant Act 1954.
Key features:
- Minimum ten-year agreement
- Assignable after two years
- Rent review every five years
- No annual Retail Prices Index (RPI) increases
- You will be responsible for all repairs and maintenance
Lease Agreement Template
It’s an important part of working with Star Pubs that all prospective licensees receive a copy of our template pub lease agreement.
Download the FRI Lease England and Wales Template (335kb)
Search for Fully Repairing and Insuring Lease Properties
Next steps
Learn more about the application process for our Leased and Tenanted (L&T) agreements.
If you’re a new operator and are interested in lower ingoing costs with more support, then our Management Agreement might be right for you.