Mortgages and loans for restaurant businesses
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.
Main Features
Freehold |
Leasehold |
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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:
We are experienced in offering financial solutions for purchases, remortgages, debt consolidation, capital raising (extensions) and cash injections across the restaurant sector. |
We are able to offer mortgages for leasehold businesses to cover a short term lease of up to 35 years. Historically we have assisted with funding leases for companies such as Punch Taverns and Enterprise Inns. The following should serve as a guide:
A leasehold business is not recognised by the majority of lenders as sufficient security for the loan. Most will advance up to 50% of the ingoing costs, unless you are able to provide additional security such as a residential property. |
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
