Freehold licensed businesses are generally sold as a complete going concern. The property is owned outright and a purchaser can borrow in the region of 50% to 70% of the purchase price on mortgage as the freehold property offers a good security for a loan. A licensed premises which is owned freehold is almost always "free of tie" which means that the owner can buy beer and all other supplies from wherever he/she chooses. Being free of tie, the owner can negotiate substantial discounts with the suppliers, buying at prices which are very substantially lower than those charged to tied lessees or tenants. The profitability of the business can be much higher than with leases and tenancies.
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