Cheers! Local pub saved after landlord’s takeover
A landlord has secured the long-term future of his popular local pub after agreeing a commercial mortgage with specialist lender Together.
Paul Garner, who has been the sitting tenant at The New Albion pub in Wakefield, West Yorkshire, for nearly three years, borrowed £133,250 to buy the freehold inn, following discussions with its previous brewery owner.
Forward-thinking Paul plans to build up the already-successful business so that his two-year-old son Louie can take over its running in the future.
“We’ve always been popular with regulars but since we opened up as a free house, independent of the brewery, we are getting even more people through our doors. If we can carry on doing what we are doing well, and with the continued support of our locals, we’ve both got a really bright future ahead of us.
“That’s why I bought the pub, as a nest egg for my little lad when he grows up.”
The landlord seized on the business opportunity after the pub’s Midlands-based owners decided to stop brewing its beer through a third-party brewery in Yorkshire, casting uncertainty over the pub’s future.
However, Paul feared his long-term plans to take over the business had been sunk after he approached a mainstream bank for funding, but was refused the finance he needed for the buy-out, because of the complexities of the case.
Following his initial setback, Paul spoke to mortgage broker Phil Trueman of Reach Commercial Finance brokerage, who introduced him to Barry Dillon, Together’s regional development director for Yorkshire.
Barry visited the pub and, following a valuation and a careful assessment of the case, agreed a commercial mortgage of £133,250 with a term of 20 years at 65% loan-to-value, to fund Paul’s takeover.
Barry Dillon said:
“We were able to deliver the goods after Paul was turned down by a high street bank. We went to have a look at the pub and Paul’s case for funding, and everything stacked up.
“At Together, we have a philosophy of common sense lending and an appetite to fund these kind of landlord takeovers for successful pubs at the heart of their communities, preventing them either being boarded up or flattened. Paul has some fantastic regulars, visiting a pub in an area with a great real ale culture, which means he – and Louie – should pull in the customers for years to come.”
Phil Trueman said:
“We worked with Together to make sure we got the best possible outcome for Paul and his son. We’re delighted that he can now carry on running The New Albion and wish him well for the future.”
Together has been providing finance for 43 years and announced record lending for the 12 months to 30 June 2017, with a current loan book of more than £2.37 billion.