Recent statistics show that the UK population spends more on
eating out than cooking at home. As our tastes become more varied
and public houses increasingly opt to convert to 'gastro pubs',
restaurant mortgages are becoming far more attractive to
lenders.
We understand that when purchasing a restaurant you are buying
more than just the property itself. Our business mortgage options
are designed to cover the licence, the goodwill and fixtures and
fittings as well as the building itself.
Main Features
Freehold |
Leasehold |
The terms of a commercial loan against a restaurant
vary considerably from lender to lender but as a general rule, the
following will apply to a freehold business:
- 60% - 70% loan to business value ratio
- 15-30 year mortgage term
We are experienced in offering financial solutions for
purchases, remortgages, debt consolidation, capital raising
(extensions) and cash injections across the restaurant
sector. |
Many lenders do not recognize leasehold premises as holding any value from a security perspective. We often successfully deal with this issue by utilizing any additional freehold security clients hold and/or by utilizing the Government’s Enterprise Finance Guarantee Scheme. The following should serve as a guide:
- Up to 50% loan to business value ratio
- 15-30 year mortgage term
|
Factors Affecting Your Loan Application
There are a number of factors which can help to make your
application more attractive to a lender:
- A deposit of 30% or more
- Additional security
- Business plan
- Proof of experience
- Good credit history
- Two years' trading accounts or strong income projections
- Strong proposal from Christie Finance
When assessing a restaurant mortgage application,
any lender will also have to take into account the
following:
- Good trading location
- Licensing details
- Previous restaurant experience of the applicant
- Is the building a stand-alone property, or part of a
complex?
- If the restaurant is closed, they will have to take into
account the cost of re-opening
Go to 'Our Offices' to find your
local business mortgage representative now.
Christie Finance –
The intelligent choice
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