Selling your pub quickly for cash is a goal many pub owners aspire to achieve. Understanding the process is crucial if you want to transition into a new business venture, retire, or simply need a fast sale.
This comprehensive guide will take you through the process step-by-step, ensuring you have all the essential information to make a successful sale. Let’s start selling!
Things You Must Know Before, Or Do Before Selling
Before you sell your pub, it’s crucial to determine its market value accurately. Here’s how:
1) Consult with a Specialist Agent:
Work with a professional property agent specialising in the pub sector. They can provide expert advice and demonstrate comparable sales evidence, helping you set a realistic guide price.
2) Financial Documentation:
Engage an experienced accountant to prepare necessary financial documents, including:
- Three years of Profit and Loss statements
- Four-quarters of VAT returns
- Management accounts from the last year-end
- Trade splits and barrelage
- Consider discussing the VAT election with your accountant.
3) Proof of Ownership:
Provide your agent and solicitor with proof of ownership. If it’s freehold, a copy of your title from the Land Registry is required. For leasehold, provide your lease details.
4) Certification Documents:
Buyers will need certificates confirming compliance and safety. Ensure you have documents like an Energy Performance Certificate (EPC), asbestos survey, gas certificate, environmental health assessment, fire risk assessment, etc.
5) Staff Records:
Prepare a record of your staff members, including their roles, working hours, tenure, holiday entitlements, and pay rates.
6) Inventory and Fixtures:
Create an inventory of fixtures, fittings, and stock levels to clarify what’s included in the sale. Include an independent valuation of fixtures and fittings.
7) Property Maintenance:
Make necessary repairs and cosmetic upgrades to enhance the visual appeal of your pub. First impressions matter, and a well-maintained property is more attractive to potential buyers.
The Process Of Selling Your Pub
Now that you have a clear understanding of your pub’s value let’s delve into the step-by-step process of selling it quickly for cash:
- Work with a Specialist Agent: Collaborating with a property specialist with expertise in the pub sector is crucial. They can help maximise your property’s exposure to the market, provide comparable sales evidence, and offer marketing and selling tools.
- Instruct an Experienced Solicitor: Ensure your solicitor has experience with Trading Going Concerns (TOGC) and staff transfers (TUPE) to navigate legal requirements effectively.
- Provide Financial Information: Share your financial documents with potential buyers, demonstrating your pub’s profitability. Include key accounts like Profit & Loss, VAT returns, management accounts, trade splits, and barrelage.
- Certify Ownership and Compliance: Buyers will require proof of ownership and certification documents, such as an EPC, gas certificate, and more.
- Prepare Staff Records: Maintain records of your staff, including roles, hours, tenure, and pay.
- Create an Inventory: Develop an inventory list of fixtures, fittings, and stock levels to clarify the assets included in the sale.
Now that you understand your pub’s value let’s move on to the critical pricing aspect.
Pricing Considerations:
When determining the price of your pub, consider the following factors:
- Building: Whether it’s freehold or leasehold, the type of ownership affects pricing.
- Leasehold: Consider the lease’s length and annual costs.
- Freehold: Assess the value of the property’s physical assets and business turnover.
Having determined the price, it’s essential to consider the legal aspects involved in selling your pub.
Legal Considerations:
Be aware of potential legal issues when selling your pub:
- Compliance: Ensure all legal requirements and certifications are up-to-date.
- Contracts: Have contracts in place for staff and any relevant agreements.
- Tax: Understand Capital Gains Tax implications and consult an accountant for advice.
With legal considerations addressed, let’s explore your options for selling your pub.
Exploring Your Pub Selling Options
When it comes to selling your pub, you have several options to choose from, each with its advantages and considerations:
1) Specialist Agent:
Collaborating with a specialist agent who understands the pub sector can provide valuable insights and guidance. They bring expertise in marketing and selling properties like yours. However, it’s important to note that using an agent comes with the associated large fees.
These fees can impact your overall profit from the sale. The duration required to sell your pub may vary due to market dynamics and the distinct attributes of your establishment.
2) Quick Buyer:
If you’re looking for a speedy transaction, a quick buyer like K&G Lettings Limited can be an excellent choice. Quick buyers are experienced in swift property transactions and can often complete the sale within a matter of weeks.
One significant advantage of selling to a quick buyer is that they typically do not charge fees. This means retaining more sale proceeds makes it a financially attractive option. Quick buyers are particularly suitable for those needing to sell their pub urgently.
3) Auction:
Auctions offer a possible avenue for selling your pub. One advantage to remember is that auctions can draw competitive bids, which could increase the ultimate selling price. However, it’s crucial to take into account the element of time.
Auctions typically have a lead time, and the final sale price can be uncertain until the auction concludes. This option may be suitable for sellers who are comfortable with some uncertainty and willing to wait for the auction process.
4) Independent Sale:
Selling your pub independently can be a cost-effective choice. It allows you to save money on agent or auctioneer fees, which can be significant. However, this option requires a substantial amount of effort and time.
You will be responsible for crafting property listings, marketing your pub, and hosting viewings. Independent sales are best suited for sellers with the time and resources to manage the entire selling process.
Why Choose K&G Lettings Limited for a Swift Pub Sale?
For individuals searching for a fast and trouble-free transaction, K&G Lettings Limited presents a reliable choice. Their expertise in property transactions, including buying properties directly from owners, can provide a valuable solution. Contacting K&G Lettings Limited may benefit those looking to sell their property quickly and efficiently.
Benefits of Selling to K&G Lettings Limited:
- Extensive experience in property transactions.
- Expertise in buying properties directly from homeowners.
- A commitment to a hassle-free and fast sale process.
- A comprehensive understanding of the East Riding of Yorkshire property market and beyond.
- With K&G Lettings Limited, pub owners can explore a reliable avenue for a quick and convenient sale of their pub or property.
Conclusion:
Selling your pub quickly for cash involves a detailed process, from understanding its value to pricing it right and addressing legal considerations. Working with specialists, maintaining financial records, and presenting your property well are essential steps.
Consider the selling method that aligns with your goals and budget, whether through an agent, quick buyer, auction, or an independent sale. Contact us today to navigate the selling process smoothly and achieve a successful sale.
