Pubs for Sale at Auction: Pub & Licensed Property Auctions

An auction is a sale which takes place, usually in public, when a property is sold to the highest bidder, provided the amount of money offered exceeds the reserve price. The sale process by auction is immediate, with exchange of contracts being achieved on the "fall of the hammer". A reserve price is the lowest price the vendor is prepared to accept and the property will not be sold unless a higher bid is received. 

In most cases, a guide price is also available from the auctioneer.In the case of disposing of a property, auctioneers usually require a catalogue entry fee for each property that is included in an auction which can vary between £1,000 to £1,500 (exclusive) and is payable regardless of whether a sale is achieved. In addition, on completion, a further fee is payable to the auctioneer which usually ranges from between 1.25% to 1.5%, (exclusive) of the sale price. This also excludes legal fees, which the vendor is required to pay. 

Not all properties are suitable for a sale by auction because there are different types of purchasers operating in the auction market compared to normal private treaty sales. Each property therefore needs to be considered individually to ascertain whether this method of sale is the most appropriate.

The Royal Institution of Chartered Surveyors is currently preparing a document known as "Common Conditions of Sale" in order to simplify the auction process, and also make auction contracts easier to understand.

UK Leasehold Pub, Public House, & Licensed Property Leases For Sale At Auction

The Law of Property Act 1925 simplified the conveyancing process by creating two "estates" or interests in Land.The freehold estate or "fee simple absolute in possession" and the Leasehold estate, or "term of years certain".

Leasehold is therefore an estate in land which is held for a term certain, or on a periodic tenancy basis, for a length of time less than the landlord's interest.

A lease usually provides the tenant with exclusive possession of demised premises, for a definite period, in exchange for a payment in the form of rent or a premium.

UK Freehold Pubs, Public Houses, & Licensed Properties For Sale By Auction

This is the term used as shorthand for the tenure of an estate in land which exists in "fee simple absolute in possession" and identifies the ultimate owner of a property.

Such ownership usually includes not only the surface land or building, but also the sub surface of a property and all the air space above.

As part of the aim of simplifying the conveyancing process, the Law of Property Act 1925 set out two estates or interests in land, namely the "fee simple absolute in possession" or 'freehold' and the "term of years certain" or 'leasehold'.