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Licensed Property

licence and value

LICENSED PROPERTY. In considering the value of licensed property, it should be remembered that the purchase money named in the last deed of conveyance may have been an inflated price and therefore may not be much of an indication as to the present value. The rent of a public-house, when tied to a brewery company, cannot always be taken as a correct basis upon which to estimate the value : the rent may be a com paratively small one, in view of all purchases having to be, made from the brewery. But where the house is owned privately and is free, the rent may be taken as a fair basis, because the owner does not get anything from the trade of the house, and looks to the rent for a return on his capital invested in the purchase of the house.

A licence is liable to be taken away by the licensing magistrates. An insurance policy should therefore be obtained to insure against loss by depreciation in value of the interest of the insured in the premises by the forfeiture of, or refusal to renew, the licence.

The policy covers any such loss up to a specified amount, and usually contains a clause as follows : " Provided always that in the case of an On-licence, if the insured shall be entitled to obtain the payment of compensation under the provisions of any Act of Parlia ment in respect to the refusal to renew the said licence, or, in the case of an Off-licence, if the renewal of the said licence shall be refused on any ground other than the ground that the premises have been ill-conducted or are structurally deficient or structurally unsuitable, or grounds connected with the character or fitness of the proposed holder of the said licence, no claim shall arise under this policy." (See VALUATION.)