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    • Maisiebabe
    • By Maisiebabe 13th Nov 17, 5:29 PM
    • 1Posts
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    Maisiebabe
    Finance/Mortgage for residential + lifestyle business
    • #1
    • 13th Nov 17, 5:29 PM
    Finance/Mortgage for residential + lifestyle business 13th Nov 17 at 5:29 PM
    Hi, I'm a newbie, hope that doesn't put you off I have seen a post similar to mine but there are differences, so here goes:

    I am receiving an RAF pension and would like to take the plunge and work for myself. I have seen a two bed property that I like, that happens to have a small (9 pens) cattery in the back garden. The office is external to the house, as is the laundry room for the cattery, so no part of the residence itself is used for the cattery. The property is on sale for £250,000 and is being advertised as residential only. I can put up 50%.

    Now most banks won't give me a mortgage unless the cattery is closed. Still not sure why having a cattery in the garden is a threat to the house but there you go. The cattery will never be big enough to be viable for a commercial mortgage. So my question is, how do people running so called lifestyle businesses from home get a mortgage?

    In addition to the cattery and my pension I intend to be a franchisee for a business specialising in looking after pets in the clients home, pet transport to the vets/airport etc and setting up dog-sitters, who look after your dog whilst you are away. With the franchise, starting turnover is usually around £3500 per month (30% profit margin) with the highest earners bringing in around £11,000 a month (profit margin increases with turnover). I would be looking to be around £7,000 a month, once established.

    There must be some way to get finance for the property, how do smallholders do it etc?

    Many thanks for reading this.
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    • Savvy_Sue
    • By Savvy_Sue 18th Nov 17, 4:38 PM
    • 37,823 Posts
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    Savvy_Sue
    • #2
    • 18th Nov 17, 4:38 PM
    • #2
    • 18th Nov 17, 4:38 PM
    This is the time when a mortgage broker would probably be the way to go. Not got a good enough internet connection atm to look for links, but if you look at the main site there will be articles on mortgages which will probably have some links.

    It's not so much that the cattery is a threat to the house, I'd say, as that there are fixed divides between residential and commercial mortgages.

    And I'd say do due diligence on those franchise figures. If you can, speak to a range of their franchise holders, and double check there are no disgruntled former franchise holders online ...
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