A Grade II listed pub in the North Yorkshire village of Sleights has been sold freehold to a local couple, who plan to restore it and reopen in 2027. The Plough Inn was marketed at £300,000 and sold for an undisclosed sum, This Is The Coast reported on 3 October. Buying a pub freehold means buying two things at once: the building and the business.
01What was sold
The pub sits on the main road between Whitby and the North York Moors National Park. Alongside the bar, the site has three letting bedrooms, living space for the owners and outdoor trading areas.
The new owners plan to restore and refurbish the building before it reopens. How they paid for it was not reported.
02How buying a pub freehold is usually funded
A freehold pub purchase usually has two parts, and lenders tend to treat them differently.
The first part is the property. This is often funded with a commercial mortgage secured on the building. The lender will want a valuation and a deposit from the buyer.
The second part is the business. Refurbishment, stock and the cash to cover the first months of trading are not bricks and mortar. They often need separate money, such as a business loan or the buyer's own savings.
A pub that is closed has a further problem. There is no recent trading for a lender to look at. So the lender leans more on the buyer's experience, the refurbishment costs and a realistic forecast for reopening.
03What to prepare if you are looking at a pub
If a pub with its freehold is on your list, get these ready before you make an offer.
- The last two or three years of accounts, if the pub is still trading.
- A quote for any refurbishment work, with a margin for surprises.
- A summary of your hospitality experience.
- A cash flow forecast for at least the first year after you reopen.
- Proof of the deposit you can put in yourself.
A broker can look at the property and the business together, across a wider range of lenders. Our business acquisition finance page explains how we help buyers structure a purchase like this.
For more on buying a pub or restaurant site, read our guide on how to buy a pub restaurant site.
