The Admiral Lease is designed to encourage greater lessee investment by offering more security and flexibility, therefore allowing our lessees to develop their businesses over a longer period of time and to create capital value. Lessees are able to set the term to suit their business plans in blocks of five years from 10 to 30 years. The Admiral Lease is not usually excluded from the security of tenure provisions of Part 2 of the Landlord and Tenant Act 1954 (the LTA 1954).
Rents may increase or decrease annually on the anniversary date in line with inflation, which we measure by reference to the Retail Price Index. In addition, rents are also separately reviewed every fifth year of the term to an open market rental. The standard Admiral Lease does not have an upward-only rent review clause within it. However, some of the agreements that were entered into before Admiral bought your pub do contain such clauses, but on future rent reviews (referred to as Rent Assessments in the Pubs Code) we ignore their effect. (Please see the Rent Assessment section of the Admiral Code of Practice for more details). This means that rent levels are reviewed up and down depending on the realistic needs and potential of the business.
Under the terms of the standard Admiral Lease you are required to put and keep the whole of the property in good repair and condition. It is therefore important that you are fully aware of the condition of the property at outset. To assist with this, for all new leases we will provide you with a current Schedule of Condition which highlights the condition of the property at that time. Please note, a Schedule of Condition is not a formal survey but an assessment of the condition of the property and we strongly recommend you obtain a full survey from a qualified professional with industry experience before entering into any lease.
Once your business is established, you may wish to sell your business and your lease to another party. Our standard lease allows for such a sale after two years although, depending on the circumstances, we may be flexible. On receipt of your written request to assign your lease, we will as soon as reasonably practicable provide you with details of our lease assignment process and information relating to the relevant fees and associated costs. (Please see Appendix B of the Admiral Code of Practice for more details).