Business property

Abstract

Reg Pullin has been employed for a number of years as a sales clerk in a large company producing cardboard containers. As a result of a downturn in trade the company decide to try to shed staff by a voluntary redundancy policy Reg has been for a long time interested in running his own business and he sees the following advert in a newspaper:

Village Newsagent/General Stores and Sub-Post Office in pleasant area in the Peak District. Attractive detached property with 4 bedrooms, 2 reception rooms, modern bathroom and 2 w.c.s. Full gas fired central heating. Lawned garden. Takings: £2400 per week, plus Post Office salary £12 000. Price: £108 000.

Reg is very interested and he andhis wife Lynne are even more keen when they view the property. He decides to sell his own house for £68 000 and to use his redundancy money of £20 000 to purchase the post office/newsagents. He decides to see his bank manager, who agrees to advance him the remaining £20 000 over fifteen years.

Reg makes an offer of £108 000, which is accepted ‘subject to contract’ by the sellers, Mr and Mrs Reaney.