Each pub purchase is different and will be tailored to your needs but in a nutshell we will usually:
Negotiate and advise you on the basic terms of the deal (or the 'Heads of Terms') that may have been put to you by the Seller and/or the agent (if any)
If need be advise you on starting up your Business and as to whether a Freehold, Leasehold or tenanted pub purchase is best suited for you
Check and negotiate the lease or (in the case of freehold purchase) transfer documentation
Check and negotiate the contract for sale of the business
Raise enquiries and carry out searches on the business to be sold and the leasehold property
Advise you on licensing arrangements, employment issues and hire agreements
Check the landlord's title to the pub
Buying a pub is a complex process so this overview can only give you a general indication of the usual steps that should be taken when buying a pub.
The first step to buying a pub is find a pub that you like the look of and at first glance appears to make sound financial sense. Typically purchases ask property agents but there are many other ways of finding attractive propositions such as talking to people in the business or searching the internet.
Once you've found a pub for sale that you like the look of the next step will be to agree on the basic terms of the purchase (called the 'Heads of Terms') with the Seller, usually via an agent. It is important to take advice from a solicitor on the heads of terms: all too often basic essential terms of the transaction are not discussed until much later in the buying process. By then the Seller will often be much more reluctant to agree any new or any changes to the main terms of the purchase. Worse still, if an important term cannot be agreed later and the deal falls through as a result you risk losing all the time and money that you've put into the purchase.
You should gather as much information about the finances of the business as possible such as audited accounts, VAT returns, management figures, weekly takings etc. You should discuss these carefully with an accountant. It is important that you take advice from an accountant who is experienced in licensed properties.
It is absolutely essential to employ a competent surveyor to check the building. If, for example, there is damaged roof or foundations this can be very expensive to fix. Even if you are leasing the building and the Landlord is directly liable for the cost of these items and you are not indirectly liable via a service charge these problems can still cause severe disruption to the business and consequentially lose you a lot of money.
The Surveyor should also advise you on the condition of the Contents being sold with the business. For example, it is pointless paying good money to the seller for pumps if they will need replacing within a couple of months.
The Seller's solicitor should send your solicitor documentation that will allow your solicitor to examine the seller's 'title' to the property. Whether you are buying a freehold or leasehold pub this means that your solicitor will advise you on whether:
1. The seller actually has the right to sell the pub and
2. There are any problems with the legal title to the land you are going to buy or lease. The potential 'problems' are too numerous to list but could include not being able to use the land for a particular use (eg as a restaurant) or having to pay a third party for the use of some part of the property.
There are many enquiries that your solicitor will need to raise with the Seller on the property and the business. These will range from checking to see that there is a valid existing premises licence in place to ensuring that the business being bought is legally sound.
Your solicitor will also need to carry out a number of 'searches', normally to check whether there are any other interests or restrictions affecting the property that you would otherwise be unaware of. You will normally need to carry out environmental, local, water and chancel searches. Other searches may be necessary depending on the transaction.
The Seller's solicitor will send the contract for sale of the pub. If a new lease is being granted a draft lease will also be sent. If you are buying the freehold draft documentation necessary to transfer the freehold title will be sent. Your solicitor will invariably need to make many amendments to these documents to cater to your specific business needs. It will also usually be necessary to negotiate various terms. Your solicitor will explain the implications of the contract and lease/transfer documents.
Once you are happy with the terms of the draft documents then 'engrossments' (ie final versions) will be produced for you to sign.
If there is to be an exchange of contracts normally signed contracts and the deposit moneys will need to be sent to your solicitor. You solicitor will then exchange contracts and send the signed contract with the deposit moneys to the Seller.
After exchange of contracts completion will take place. This is when the balance of the purchase moneys are sent to the Seller and you officially become the new owner of the pub and the new tenant or freehold owner of the land.