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Commercial Mortgages for Restaurants

The restaurant sector offers an enormous variety of dining options, which means that attracting and retaining customers is key. Diners demand quality, but they also look for diversity and value, so there are opportunities for every type of restaurant business to succeed.

In these turbulent times, we have seen an increase to Company Voluntary Arrangements (CVAs) and administrations with economic uncertainty fuelled by Brexit negotiations. This has opened an opportunity for independent operators to thrive, as consumers favour niche, local eateries over large chains. There has never been a better time to acquire sites, with plentiful supply, reduced premiums, and landlords offering significant inducements.

Casual dining will still face pressure until supply reaches a sustainable equilibrium. Further mid-market restaurant casualties are expected. However, even in the most testing economic conditions, consumer spending in restaurants has grown every year since 1980, making the restaurant sector a sound option for investment. Notable changes to consumer habits in the Leisure and Retail sectors show consumers tend to favour locations which offer leisure and retail along with a strong food and beverage offering.

Lender Appetite 

We see limited interest from traditional institutional investors, with a growth in interest from specialist investors including private equity, incubator investors etc. Confidence amongst lenders has been reduced, with traditionally aggressive lenders announcing a more cautious approach, and resulting in operators resorting to alternative forms of funding.

Whichever option you have in mind, Christie Finance will help you get the funding you need to purchase or lease the restaurant you want.

Restaurant loan features

The terms of a commercial loan against a restaurant will vary considerably from lender to lender but, as a general rule, the following may apply:

65% - 100%
loan to business value ratio
15-25
year mortgage term
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Key Factors to Consider for Your Loan Application

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 personally benefit from?

  • A deposit of 30% or more

  • Good credit history

  • Two years' trading accounts and income projections

  • Strong proposal from Christie Finance

  • Additional security

  • Business plan

  • Proof of experience

Our commercial mortgage services

We’ve been helping first-time buyers and existing business owners secure funding for over 35 years.

What makes Christie Finance different?

Local

National coverage across the UK

Project management

From intial enquiry to completion - saving your precious time and money

Quick responses

Rapid business and commercial mortgage decisions

Relationship - C&Co

Our brokers can access the best new businesses for sale

Specialist knowledge

Over 40 years experience in our specialist sectors

Tailored loan options

Fixed and discounted rate available

The 'Christie' name

Adds credibility to the proposal - buying you a better deal

We are independent

We have no tie to any one lender

Find out more about commercial mortgages