Commercial Mortgages for Pubs
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The pub is a central feature of UK life, with three out of five adults visiting at least once a year. The pub industry is a significant contributor to the economy, and given that both the number of breweries and beer sales are on the rise that is likely to continue to be the case.
There are currently around 50,000 public houses in the UK and the supply of good-quality premises is generally plentiful. So, too, are the types of pub available: do you want a city pub or a country inn? Will you be offering food and entertainment? And are you looking for a leasehold or freehold premises?
Whichever option you have in mind, Christie Finance will help you get the funding you need to purchase or lease the pub you want.
As an independent broker, Christie Finance is not tied to any particular lender. We have established and trust-based relationships with the leading lending institutions. We know which ones are financing the public house sector, and whom to approach to get the most competitive deal for you.
Pub loan features
The terms of a commercial loan against a pub will vary considerably from lender to lender but, as a general rule, the following may apply:
70% - 80%
loan to business value ratio
The Christie Finance Team
At Christie Finance we understand that running your own pub is a dream for many. While the business model for running a pub can be relatively straightforward, there are particular issues to be aware of, such as licensing and health and safety laws. Our experienced Consultants will be with you all the way – guiding you through the finance options and mortgage application process, from your initial enquiry to completion. But we don’t leave it there: We are always available to discuss and review your commercial mortgage to ensure it is as competitive as possible.
Key considerations
When you are thinking about buying a business there are various things that both you and a potential lender will need to consider:
• Experience – do you have the right level of experience to run the business? How will you run it?
• Performance – how well is the business doing? Is it in a good location? Is there enough profit in the business to be able to repay a loan easily and allow you to take enough out of the business for yourself?
• Contribution – what are you able to invest in the business (savings, other properties, etc.)?
• Personal history – do you have a clear credit history?