Guidance specifically for Sellers...

When you have decided to leave, notified your landlord and received a provisional timescale to change day, you need to appoint a valuer to agree the value of the trade furniture, fixtures, fittings and effects which you will sell to the new tenant.

The Inventory

Your valuer will wish to prepare the inventory in good time and there are several things you can do to help:-

Find your old inventory that was prepared when you moved in. Your valuer can then assess what items are fixed and need to be included again.
Replace or remove furniture that you intend to keep before the valuer arrives
Produce invoices for the purchase of any significant new inventory items purchased within the last 3 years. The production of invoices is beneficial for 2 reasons. To provide proof of ownership of the item and to obtain the best price possible.

Any items on lease or rental, must be excluded from the valuation unless you settle the lease in full and your valuer receives written confirmation from the lease company that the items can be sold.

The incoming tenant is not obliged to take on any lease commitments. You may have an outstanding period of time on a lease on some equipment which you will have to negotiate with the lease company to cancel your commitment.

Your valuer will provide you with a draft inventory for approval, and in addition to the main inventory of "trade" items there may be some items marked as "optional" or "company".

Trade items are the basic furnishings and equipment which are in regular trade use. If bedrooms are furnished for letting, the rooms must be in regular use, approved for letting purposes and a full Fire Certificate must be held. Catering effects must be in full use and up to current hygiene standards.

Optional items are mostly of a private or decorative nature and the ingoing tenant is not obliged to take over any optional items, but has a choice, just as you have the choice to leave or remove them.

Sometimes company fixtures are recorded on the inventory for the avoidance of doubt as to ownership. You may have made changes to the property e.g. by adding bar counters or back fittings which the company will claim as their property without compensation or in return for an ex gratia payment.

The inventory is sent to you and the Pub Company/Landlord for approval. Subject to decisions on content for previous transfers of the business or changes in the style of the business over recent years, some items may be marked optional or claimed as landlords fixtures. When the inventory has been approved by yourself and the brewery, it is then available for issue to the valuer for the incoming tenant.