Moving pubs

Selling and buying property can be a stressful business, but once you're ready to move on, a little forward planning can make all the difference, writes Simon Chaplin of Christie & Co

There is little doubt that the decision to sell your pub is a major one, as it is most probably both your job and your home. It is often said that buying and selling property is one of the most stressful experiences you can encounter, but with the right planning and advice a smooth sale can be achieved.

Take time to stand back and walk round your pub to see if there are any outstanding repairs to be done.

Many buyers will first visit your premises as a customer, so first impressions count. Likewise, any outstanding planning, environmental health or licensing issues will be picked up and could cause unnecessary delay.

If it is a leasehold property consider:

• How many years are remaining on your current lease? If there are less than five years remaining can a new lease be obtained?
• When is the next rent review is due? Any review due in the next six months could interrupt a sale.

While you are giving these matters some thought it is worth calling in a specialist business agent to see how active the current market is for your type of property.

Although you may not be looking to place the premises on the market for some time, you will be given realistic assessment of the price you may achieve. An agent can also advise you how to present your business at its best, which could help achieve the price you require.

In order to make this assessment an agent will need to see:

• your latest trading accounts
• VAT returns to bring the figures up to date
• a copy of the lease, if relevant.

When taking the advice of an agent remember to be realistic. In many instances a prospective purchaser will have an independent valuation survey carried out when looking to raise funds for the purchase. Consider what you originally paid for the business, the improvements you have made and how this is reflected in your trading accounts.

With a realistic price, interest should be maximised and a buyer found who is both able to pay close to or at your asking price and proceed without undue delay.

When considering the sale of a freehold or assignable lease, most agents will quote an asking price which includes the trade fixtures and fittings. If you have any personal items in the business area which you intend to remove then it is worth making a note of these so they can be excluded.

Once you have decided that your property is looking its best and the timing is right you will be ready to instruct your agent to proceed with marketing. You may be asked to enter into an agreement which clearly states the agent's terms and conditions. Make sure you keep a copy.

In order to comply with the Property Mis-descriptions Act, a draft set of sales details should be sent to you.

Check this for any facts which you know to be untrue or that have been misinterpreted. Now that you have made the decision to sell your pub, it is worthwhile contacting your solicitor and your lender, as they may hold the deeds of your property - it is useful to know exactly where they are.

Where staff are concerned, bear in mind that employment legislation has changed considerably in recent years. A business sold as a going concern, will have to be sold in accordance with the Transfer of Undertakings (Protection of Employment) Regulations, also known as TUPE.

Staff​

You also need to consider when you inform your staff that the property is for sale. If you have asked the agent to advertise the property in the trade press and produce sales details, then however discreetly this is done, word may sometimes get out. It may be preferable to inform your staff in advance that the business is to be sold as a going concern and that their jobs should be secure.

Any offers should be handled by your agent, who will be able to obtain further information on the prospective buyers. They will ask for written confirmation of the offer and an indication of how they propose to fund their purchase.

A business mortgage specialist can provide prospective purchasers with a realistic assessment of their spending limit, which can be important when deciding whether to accept the offer. Other factors to consider include previous experience, BII certificates and references. These are particularly important when selling a leasehold property as your landlord will also need to approve the purchaser as a lessee.

Although dependent upon the circumstances involved, the process with either a freehold or leasehold property is likely to take between eight and 12 weeks after a deal has been agreed, but can be longer.

A valuation survey may be required, searches will be undertaken by the purchaser's solicitor and enquiries raised with regard to planning, licensing, staff and fixtures and fittings. If the necessary steps have been put in place, then this information will be readily to hand.

One of the other matters to organise is stocktaking on the completion day. A specialist stocktaker can attend to provide a detailed stock value. They are also able to act independently between both parties, which can smooth procedures on the day of completion.

Having sold your property you are in a strong position when negotiating your next purchase and it gives you the freedom to make the right decision.

First and foremost, when looking for your next business, keep an open mind and use your imagination. The experience you have gained at your last business should enable you to see what the long term future of that business might be. This should then give you the opportunity to secure a business to which you can add value and start the whole process all over again!