The Leisure industry is an exciting and popular business sector and good sites remain in demand, despite the apparent slowdown in the public house area.
Buying a freehold public house or restaurant is not without its difficulties. Clients looking for finance need support and assistance right from the start and our consultants have the skills and knowledge to accommodate most proposals.
Generally speaking, interest rates from a specialist lender are likely to be in the region of 1.75% to 2% over bank base rate, with two years’ on an interest-only basis, to get past the “bedding-down” period.
Repayment terms of up to 25 years help with the cash flow. Nobody expects to keep the mortgage that long but having the option of a longer terms means that it is easier to budget and lump sums can always be paid off the mortgage.
The deposit for the purchase need not be as high as you might think and could depend on whether the business is trading profitably or needs a new owner to inject some life into the business.
If you feel you don’t have enough deposit, we can help. Our relationships are not only with lenders but breweries as well so if the business is healthy and trading well, we may be able to arrange an interest-free brewery loan to assist towards the deposit. The repayment for this loan is met from the discounts on the products bought from the brewery.
To find out more about how we can help you, please contact All Property Finance.