Commercial Property Mortgage?

ViHan

Dh and I are looking at a Commercial Property in Wales.. Its a Hotel/Bar type place which has room for improvement but we feel at first glance it would be perfect for us.

My question is: For buying a domestic property, there is usually a requirement for a deposit. How does it work with Commercial Mortgages? Do we still need to provide one? And if so, how much % wise would we (typically) need??

TIA

sarmia

Depends if it is Freehold or Leasehold.

If it is Freehold would need at least 40% deposit.

ViHan

Thanks. Its a freehold. Not the news I wanted but still

sarmia

Other things to be considered would be whether the business is trading and what the books say.

ViHan

I got detailed particulars today. It is trading, but only at a fraction of its potential. The opening hours for the bar area are very limited, and there is scope for early and afternoon trade. One of the letting rooms is currently closed and if it was updated, the lettings would be much more attractive and therefore could be priced higher.
It appears there is literally a couple running it, no employees, and tbh I didn;t see much enthusiasm
It is central in a small popular Welsh town, passing trade especially in the Summer could be phenomenal, and its a stones throw from the beach.
I really could do with looking at the books :rolleyes:

sarmia

Who is it on with?

ViHan

Will PM you a link