Selling Guide

THE MARKETING PARTICULARS

Following our meeting, when signed instructions are given, we would prepare detailed marketing particulars including the main information a potential buyer will want to know prior to arranging a viewing. We would use the detailed notes that we take on our initial appointment with you to ensure that all information is correct. Colour photographs of your business can be used on our marketing details if required to present your business in its best possible light. The marketing particulars will then be submitted to you for approval prior to marketing.

AFTER APPOINTMENT FEED BACK

Following the appointment, we always endeavour to speak to the applicant to obtain some feedback from them and report this information to you whether the feedback is good or bad. We feel it’s very important to keep you informed on all feedback received to realise a sale of the business.

FURTHER INFORMATION

After viewing, interested applicants then generally want to see further information to assist them in deciding on whether they want to proceed or not. The most commonly asked for information following a viewing is the last 3 years accounts, the most recent VAT returns and a copy of the lease on the property, if applicable.

Ideally, we like to hold this information on file, so when an applicant requests accounts or the lease, we can easily send it through to them. This information is ONLY sent to seriously interested applicants who request this information after viewing a business and after you have given us permission to release it.

Unless very experienced, applicants will normally take the financials to an accountant to review and should any enquires follow, we encourage these get asked to us rather than direct to you.

THE OFFER

After an applicant has satisfied themselves with all further information they require, we encourage them to make an offer which we would then submit to you. We would advise you on this offer, taking into account the length of time the business has been on the market, the level of interest received, current market conditions and taking into account other feedback that had been received from any previously interested applicants.

SETTING UP THE SALE

When an offer is accepted, we usually request a deposit, proof of finance, solicitors’ details and referees that we can write to in order to obtain references for the landlord, if you are selling a leasehold business. Until receipt of a deposit, your business will remain for sale and marketing continues.

To help both buyers and sellers we have may established contacts with commercial solicitors and commercial finance companies who can assist.

Upon receipt of all information request and a deposit being received, Heads of Terms are prepared then issued to all parties including the seller, buyer and both solicitors acting for them.

THE SALE BEGINS

Some agents end their involvement here and think they have done enough to be paid their fee on completion, legally they are probably correct, however, at Bradleys Countrywide our involvement continues all the way to completion.

To accommodate this, we have a very experienced Sales Progression Department who oversee all sales from the moment solicitors are instructed at the start, all the way to completion. They will keep you informed on the latest position of the transaction, liaising with all solicitors involved to ensure that the sale progresses smoothly and that it reaches completion in the timeliest manner.

THE SALE PROCESS

1. Sale is agreed, with heads of terms issued
2. References are taken up on a buyer to obtain landlords approval (applicable to leasehold businesses only)
3. Sellers solicitor will submit a draft contract
4. Purchasers solicitor will raise enquiries and carry out searches
5. Enquiries answered
6. Contract approved
7. Contracts signed
8. Contracts exchanged and a completion date fixed
9. Stock taker arranged for day of completion, if applicable
10. Solicitors transfer funds for completion
11. The vendor and agent are paid

IMPORTANT NOTE

From 1 October 2008 sellers and landlords are required by law to provide an Energy Performance Certificate (EPC) for all buildings or parts of buildings when they are sold or rented.

An Energy Performance Certificate gives prospective buyers or tenants information on the energy efficiency and carbon emissions of a building.

The certificate provides energy efficiency with a rating system of A-G and recommendations for improvement. EPCs were first introduced for the sale of domestic homes, as part of the Home Information Pack also known as a HIP. Although from April 2008 this was extended to newly built homes and large commercial properties. The ratings (similar to those found on products such as fridges) are standard so the energy efficiency of one building can easily be compared with another building of a similar type.

From April 2018, the proposed legislative changes would make it unlawful to let residential or commercial properties with an EPC Rating of F or G (i.e. the lowest 2 grades of energy efficiency). This could have very significant implications for landlords and for occupiers who wish to assign or sublet space, including: Marketability of some properties would become impossible unless they were upgraded to meet the minimum standards. It is estimated that approximately 20% of non-domestic properties could be in the F & G rating brackets. Further clarification on the transactional trigger for minimum energy standards is awaited; however, the new minimum standards could apply to all lettings and re-lettings, including sub-lettings & assignments. Valuations of such properties could be affected if their marketability is diminished. Rent reviews for properties in this situation could also be affected. Implications for dilapidations assessments would also exist.

For a building to fall within the requirement for an EPC it must have a roof and walls and use energy to condition the indoor climate (i.e. has heating, air-conditioning or mechanical ventilation) then you will require an EPC.

Any Commercial Property on the market before 1st October 2008 and remaining on the market will need an EPC by 4th January 2009 at the latest. If it is sold or rented out in the meantime, an EPC must be commissioned and then handed to either your agent or solicitor.

The seller or landlord is responsible for ensuring that an EPC is available to a prospective purchaser or tenant at the earliest opportunity and no later than when a viewing is conducted or when written marketing information is provided about the building, or in any event before entering into a contract to sell or let.

EPCs are produced by accredited energy assessors and for commercial properties are valid for a period of 10 years, or until a newer EPC is prepared. EPCs are not required before the construction of a building is completed, nor are they required on the sale, rent or construction of: -

• Places of worship.
• Temporary buildings with a planned time of use less than two years.
• Stand alone buildings with a total useful floor area of 538 square feet (50 metres squared) that are not dwellings.
• Industrial sites, workshops and non-residential agricultural buildings with low energy demands.

As the purpose of EPCs is to enable potential buyers and tenants to consider energy performance of a building as part of there investment or transactions which do not involve a new owner or tenant may not require an EPC. Examples of this are: -

• Lease renewals or extensions ro existing tenants.
• Compulsory purchase orders.
• Lease surrenders.

Bradleys Countrywide has formed a partnership with a number of qualified assessors in order to provide a cost effective and accurate EPC. If you are unsure on any of the above information then please do not hesitate to contact our office and speak to one our helpful members of staff. Further information can be obtained from the Dept for Communities and Local Government website: www.communities.gov.uk