Facilitating a Smooth Change
- Evidence of Funds - Most importantly ask the purchaser to provide evidence that they have the funds to purchase your lease
- Suitability of the Applicant(s) - From the Landlord's perception. The Area Manager will likely need to meet them. You can assit in arranging this meeting
- Dilapidations - Ensure a full Dilapidations Report is undertaken on the property as early as possible and any works required are done or negotiated with the purchaser against the selling price. This will need to be organised by the Landlord and may well be charged to you
- TUPE - With regard to The Transfer of Undertakings (Protection of Employment) Regulations 2006), a current staff list would aid the purchaser, showing the names of all employees, roles, start dates and rates of pay.
- Pre-Bookings - If you are a busy pub restaurant or destination food house, then it is extremely helpful for the purchaser to know about forward bookings. Have your bookings register up to date with all the relevant information i.e. Name of person who has booked. Numbers in the party. Date. Time. Is it a special occasion? (Are there any deposits paid, accommodation bookings?)
- Teams' Details - If you are a Community/Sports pub then provide the purchaser with the contact details of the captains, team leaders etc. Inform the purchaser as to your normal team catering arrangements (if you have any).
- PAT Test - Make sure that your PAT (portable appliance testing) certificate is in date and that the appropriate equipment works
- Fire Certificate - If your premises require a Fire Certificate then you will need to supply a copy to your solicitor. If an Environmental Health Officer has inspected the premises recently, then you should provide a copy to the purchaser of any recommendations made by that officer following the most recent inspection.
- Stocktaking - Ensure you have booked your stocktaker (The Pubshop Ltd is happy to receive your instructions in this matter Click Here *)
- Reduce Stocks - On changeover day try to have your drink stock etc, at a low level. Purchasers are not keen on paying for high stock levels.
- Drinks Order - If possible have the purchaser put a drink order in with the brewery and have it delivered on changeover day. You should have the delivery separated from your stock, make your stoctaker aware of this and have the paperwork in place. It is now not unusual for the seller and purchaser to share the same stocktaker, splitting the fee.
- Optionals - Private Accommodation. There may be private items of furniture, carpets, curtains etc, which are not part of the fixtures and fittings but you wish to sell on. These are known as Optionals. Offer them to the purchaser. He may prefer to purchase them from you at this stage, rather than pay premium prices for new items.
- Gaming Machines (AWP) - Ensure the Fruit/Gaming Machine/Pool Table etc, people are called in to empty the machines on change day.
- Telephone - Make sure the telephone provider has been notified about the new subscriber.
- Reading the Meters Take extra caution to read all the energy meters etc. i.e. Gas, electricity and so on. Also inform suppliers of your heating oil or butane gas etc. (if applicable). Show the purchaser where everything is located
- Equipment on Hire - Have any rental or equipment leasing agreements that you may have signed up for to hand. You don't want to give the purchaser any shocks now that you are nearing completion.
- Keys - Have all the pub keys clearly labelled. The purchaser will be very grateful
- Solicitor - One of the biggest pitfalls at this stage can be the standard of your solicitor. Always employ a specialised solicitor who works with the licensed trade. It may be fair to say that when The Pubshop Ltd has introduced you to a genuine purchaser, the whole process, if unheeded and everybody has done his or her job correctly, should take approximately twelve weeks.
*Initial stocktake - around £165. Large stock values between £3,000 and £5,000 are charged at 6% of the valuation. Stock values above £5,000 are charged at 5.3% of the valuation. Shared initial stocktakes are charged at £110 per party. Stocktaking can include all cleaning materials, glassware, loose catering effects and linen.