Who owns the furniture when Buying a Pub Lease?

[Arjessa]

Does anyone know whether the Landlord or the person taking on the Lease owns the furnishing and non-fixed items that came with the Pub? We bought a 15 years Lease but not sure whether the furnishings now belong to us or still to the Landlords who have the freehold. Wondering whether I can sell some off, but don't want to be selling someone else's goods by mistake! :|

 

[StevensOnln1]

It will say in the terms of your lease. No one here can possibly give any definite answer without seeing it.

 

[Arjessa]

Thanks, I will take a look - But if the Terms of the Lease are broken, as they will be if I can't get the rent money together shortly - what then? Thanks again!

 

[David Griffiths]

It's normal for the ingoing tenant to have to pay for furnishings. What was purchased is more likely to be set out in an agreement for sale, rather than the lease itself.

As your solicitor, or if you've had the first year accounts done, your accountant.

 

[Socio South West]

If you took over from an outgoing tenant, these will almost certainly be the property of the tenant which you were obliged to buy at valuation, and should be itemised somewhere in the takeover paperwork.

However, before you dispose of anything substantial, check your lease, as there may be conditions that you leave the property 'fit for business' and an incoming tenant will be obliged to buy these fittings from you

Given the tenor of other threads you have posted on however, you don't appear to have an incoming tenant in mind..... Tread carefully....

It honestly sounds to me as if you need to talk to your landlords and suppliers... Put your hands up, and admit defeat: You will get a far more sympathetic approach, and a cheaper way out than letting debt collectors, bailiffs etc become involved. Breathe deeply and pick up the phone - it will save you a lot of stress in the long term.

 

[daniel.benson]

Talking from experience in having a few pubs,bars etc.

When you take on the lease the pub co will give you the ff on a loan and you will pay for them over the duration of your lease.

At the end of your lease the pub co will send in a valuer to work out what the ff and stock is worth.

Do not make the mistake of doing a moonlight flit and striping the place you could land yourself in trouble with the law.

Have you called your AM and tried to talk, they can be very reasonable at times after all they do not want an empty pub or a management company in which they have to pay for!

Best of luck with this, it sounds like your in a real pickle.

 

[David Griffiths]

Talking from experience in having a few pubs,bars etc.

When you take on the lease the pub co will give you the ff on a loan and you will pay for them over the duration of your lease.

I don't doubt that was correct in your case, but nearly all (if not all) of those that I've dealt with for clients required the F&F to be paid for up front together with the trading stock as part of the ingoing. Depends on the landlord.

 

[daniel.benson]

I don't doubt that was correct in your case, but nearly all (if not all) of those that I've dealt with for clients required the F&F to be paid for up front together with the trading stock as part of the ingoing. Depends on the landlord.

I know most of the big pub co will allow tenants to do this, If you look at Enterprise for instance they value the F&F at the Famous King George in Oldham at £23,200 +VAT the minimum ingoing to the pub is £13,250 this with be your deposit, legal fees, stock and all the other fees they decide to make up. Usually a tenant can get away will going in for less if they get a decent AM, the rest will be put on a loan for the duration of the lease.

Most if not all the big pub co's do this and is clearly advertised on there websites.

I've had dealings with a number of venues over the past couple of years and never paid anything accept stock and a deposit. It all depends on what type of deal with can make with the pub co/AM.

 

[David Griffiths]

It all depends on what type of deal with can make with the pub co/AM.

Exactly. You have to refer to the paperwork on any specific case to find out what was agreed.

 

[squeekwheel]

Yes, the lease paperwork will tell you that... I guess if you've bought something during that 15 year lease then it's yours anyway, but the stuff that was there when you moved in is owner's - might be as plain and simple as that.

 

[sjb84]

Hi,

I leased a pub a fair few years ago and the furniture was classed as fixture's and fittings - they were sold along with the lease.

But as stated I would check the paperwork of your lease/agreement

 

[Arjessa]

I have just found a clause under the Agreement for Sale Document that states; "The Seller shall sell to the Buyer....all the property, assets and rights owned by the Seller and used in the conduct of the Business including but without limitation the Goodwill and the Equipment" We paid 10,000 for the Equipment and 30,000 for the Goodwill.

So, if I am reading this correctly, we own all the equipment and any assets within the Pub, so are free to take/sell what we wish??

Would like second opinion if you would be so kind.
Many thanks.

 

[StevensOnln1]

You still need to see if there is anything about the state the pub must be left in when you leave.