The family which runs Lydford’s Fox and Hounds Hotel has announced that the pub will close next month due to rising costs and difficult lease terms.

Following the death of long-standing pub landlord Frank Ward last year, his wife Sue and son Jason have continued running the pub but now say that the business has become “unsustainable” due to rising costs, the expense of renovating the building and a shortened lease on the property.

Sue and Jason had approached the freeholder, the Leawood Estate, to ask whether it would sell them the property or renew their 99-year lease. However, the Wards say the Leawood Estate refused and told them it would only offer a 35-year fully repairing lease.

Sue and Jason ultimately concluded that they could not continue trading under these restrictions.

Sue Ward said: "Running the Fox & Hounds alongside my late husband Frank for over half a century has been the privilege of our lives. Following his passing last year, Jason and I did absolutely everything within our power to find a viable way forward to keep the business going. Sadly, against a tough economic climate and without the long-term security of tenure we needed to invest in the building, we were left with no choice but to bring our time here to an end.

“We are heartbroken to have to say goodbye to our wonderful staff, our loyal suppliers, and our caravan residents. We want to extend our deepest, most heartfelt thanks to every single person in the community and beyond who has supported the Ward family and the Fox & Hounds over the last 55 years. You made this place our home, and we will cherish those memories forever."

The pair have now begun winding up the business which has included ending relationships with employees and suppliers and issuing protective notices to the five occupiers of static caravans on the campsite.

It is understood that Leawood Estate’s property agents are now seeking a new tenant.