Mortgage Help & Advice

Once you have located a suitable business and agreed a purchase price, we will arrange a valuation of the business, which will take 2-3 weeks. We will also require completion of our Mortgage Application Form (which you will find in the Key Documents section of this site), along with a CV for all relevant parties, and a business plan where appropriate.

A valuation is a full business appraisal, which is carried out by an independent valuer once you have agreed a purchase price for the business. Leasehold purchases will not always require a valuation. We would be happy to instruct one of our recommended valuers to assist you.

We will look to instruct a valuer who is recognised by the majority of lenders nationwide. Once we have instructed the valuation, we will submit the same report to a number of lenders to obtain a choice of lending options.

From agreeing a purchase price, we would hope to provide an offer of finance within 3-4 weeks, dependent on the time taken to complete the valuation. Then, provided you are happy to accept this offer, solicitors will be instructed and we would hope to complete within a further 4 weeks (more for healthcare purchases).

There is no definite answer to this question. When making this decision, you should bear in mind the following: redemption costs, fixed rate term (3, 5, 7 or 10 years), market trends and the cash flow of the business, in order to assess the advantages and disadvantages of each option.

Lending parameters constantly change, but we commonly arrange a minimum of 70% of the purchase price of a freehold business. Lending criteria will be judged according to lender, your experience, and how you and your business plan are presented to a lender.

Borrowing is generally restricted to 50% of the purchase price of a leasehold business, or more with additional security. The loan term for leasehold lending will depend on the remaining years on the lease.

We may require a first legal charge over the premises being purchased, refinanced or developed. 100% funding may be available for both freehold and leasehold purchases, if additional security (such as a private dwelling house) is offered. We would remind you to think seriously before securing your mortgage debt against your private dwelling home.

For freehold funding, loan terms would usually vary between 15 and 25 years, and for leasehold funding, the loan term would depend on the remaining number of years on the lease.

Our fee is payable upon acceptance of an offer of finance from ourselves. Please discuss our terms and conditions with your local Christie Finance broker, who will guide you through all the costs associated with your business purchase.

Each application will be treated individually and assessed on its own merits. A standard rate of interest does not exist, although an average interest rate for any given freehold purchase would probably be in the region of Bank of England Base Rate plus 2.75%. This premium over Base Rate could fluctuate by approximately 0.5% depending on the lender’s perception of the strengths of the proposal. Leasehold lending is usually arranged at a slightly higher premium over Base Rate, because of the lender’s perceived higher risk.

Whatever your circumstances, there’s a good chance we could provide the funds you need. We assess every application on its merits, so it is always worth contacting us to discuss your options. If we genuinely feel we cannot assist, we will let you know.

We specialise in providing commercial and business mortgages for those who have found it difficult to obtain a commercial mortgage from the traditional high street lender.

As your business purchase is likely to be your largest single investment, it is essential to obtain adequate insurance cover to protect your business in the event of a loss occurring. Our sister company, Christie Insurance, is one of the leading insurance brokers across our trading sectors. One of their experienced brokers would be happy to assist you with a quotation for your business insurance. For further information go to www.christieinsurance.com.