Guidance specifically for Buyers...

Once your Brewery/Pub Co confirms the offer of the tenancy, you will need to instruct  your valuer for the valuation of the furnishings and stock. Assuming the transfer is likely to take place within 2 weeks, and that Knipes will be acting for you, the procedure might well be:-

Ingoing Monies

Tenancy changes are cash transactions, and the Brewer/Pub Co might well require you to pay them in advance.

• Security Deposit
• Rent in Advance
• Training Course Fee

The outgoing tenant will have to be paid on change day, and it is customary for your valuer to collect from you at least 7 days prior to the transfer the estimated amount of the ingoing.

The amount requested is an estimate only to give you a reasonable idea of the likely cost. Until the valuation is complete and the stock has been counted and valued on change day, the final figure will not be known. It is usual for the estimate to be sufficiently high to cover the ingoing, but it is fairly normal for additional monies to be required and it is advisable to have your cheque book available on change day. It is normal to settle your valuation account on change day.

Any money due back to you will be returned on change day, together with a statement and account confirming the transaction details.

You will also need to allow in your budget for Court and Solicitors fees concerning the transfer of the Licence.

The Inventory

A copy of the Inventory of trade furniture, fittings and effects will be sent to you as soon as it is available. The Inventory is mainly "trade", including items which must be taken over at their agreed tenant to tenant valuation whether or not you like them. When you come to leave the premises, you have the right to sell on the original Inventory plus reasonable replacements or items approved by the Brewer/Pub Co. The Inventory will be valued in this "in situ" context to reflect current use, life expectancy and desirability for the style of trade currently undertaken.

Optional items on the inventory may be bought by you at your discretion. You will be required to give your decision concerning optional items as soon as possible so that this can be conveyed to the outgoing tenant, this will give him the opportunity to arrange for the removal of any items not required. Your final decision on required optional items may rest upon the cost involved and the availability of sufficient funds. Should you purchase any optional items, they, or similar replacements, will remain optional and your successor may not wish to take them when your leave, in which event you will have to dispose of them privately. If you have any comments to make on the Inventory you should let the relevant people have these at the earliest opportunity.

Some items might be marked "on lease" or "rented" or similarly identified. These are excluded from the trade valuation and are OPTIONAL to you. You do not have to take on the lease or rental commitments and you should think very carefully before committing yourself to any agreement for more than a month or two. If you take on a lease agreement, you might in effect pay many times more than the item is worth and you will be committed to make payments for the remainder of the term or negotiate with the lease company to cancel you commitment (at considerable expense), regardless of whether you have any beneficial use of the leased item - which could be the case if you take on the agreement yet have to move several months after and your successor does not wish to take it on. If in doubt say "no" or seek legal advice.

Finally (but most important) you will see items on the inventory which are old, defective or worn out. Their condition will be taken into careful account in by your valuer and because they appear on the inventory does not mean they have been valued. By including such pieces it establishes the right for you to purchase and install similar style new items and eventually resell to your successor.