Completion
Completion is the date on which you pay for the pub and the seller hands over the keys. It is vital that you have all your funds available for this date. If you are borrowing additional money, your lender will have to arrange for this to be electronically transferred into your solicitor’s ‘client account’.
Waiting for the money to be transferred can be a nerve-wracking experience and there can sometimes be delays. Double check your solicitor’s bank account details and contact your lender two or three days before, to ensure that they have all the correct details. If you are using any of your own money to make the purchase, you will have to pay it to your solicitor in the form of ‘cleared funds’, such as a banker’s draft or bank transfer.
You will require sufficient funds to pay:
- the balance of the purchase price;
- Stamp Duty Land Tax on the transaction;
- solicitor’s fees and disbursements.
Additional funds will be required to cover the cost of stock and glassware that will be valued separately. This is normally paid directly to the seller via your stocktaker.
Your solicitor then arranges for the sale to be registered at the Land Registry and for the seller’s mortgage to be removed from the title (if applicable).
Practical Issues
Anticipated TimescalesThe whole process of raising additional finance and purchasing your pub typically takes between 8–12 weeks. At the outset, this does seem a long time but it passes very quickly. Do not be afraid to chase up your solicitor on a regular basis if necessary, to keep the process moving. Small delays here and there can mount up and put back the completion date if you are not careful. Be actively involved in the whole process and well organised. Make sure that you respond to any requests from your solicitor or lender promptly to prevent any delays on your part.
Contact With The Seller
A good relationship with the seller can help the whole process move more smoothly. Any complications that arise are sometimes better resolved over
a cup of tea with the seller, than by solicitors exchanging letters with each other. But remember to notify your solicitor of anything that has been discussed, so that they can ensure that you are not legally exposed.
In the days between exchange of contracts and completion, it is useful to spend time with the seller at the pub so that they can show you how the business works. It is a good time to become familiar with the pub and equipment, as well as getting to know the staff and some of the customers. It eases you into the business rather than being dropped in at the deep end on completion day.
A Final Word On Buying A Property In Scotland
The process of buying property in Scotland is different from the rest of the UK. If you are considering buying a pub in Scotland, you should take advice from a solicitor experienced in Scottish property transactions.