Lease, rent or buy business premises?

juels

Hi,

I am looking to start my own business running a small restaurant which would need to be licenced.

I am unsure about what to do when looking for premises. I do not know what the difference is between renting or leasing a property and what roughly the rates charges would be.
With a lease do you have to pay it in a lump sum or can you pay the lease payments monthly like a rent and do you have to pay rent on top of the lease.

I have looked at few places with leases for 5 and 10 years which seem quite expensive and I am thinking that it might work out better just to buy the premises.

I am not sure how easy it is to obtain a commercial mortgage or would it need to be a business loan I needed to buy a restaurant with.

I have a deposit of about 20-30% for the cost of the premises would a bank give me a loan/mortagage for the rest.

Any advice would be appreciated,

J.

Savvy_Sue

Sorry I can't answer any of your questions specifically, but if you browse back through this board you will find references to helpful sources of advice for people starting a new business of any kind, and that might help.

Your bank may or may not lend you the money you need: if your bank says no another may say yes. If you don't already have a business account that's definitely been covered on this board. Lots of banks produce guides to starting a new business so picking up a few of those might help answer your questions!

geniejj

Similar to another topic

If you have only 20-30% deposit and your a business start up it may be difficult to raise commercial mortgage on the "HIGH Street".

However there are a number of lenders who have competitive rates available.

I still have a number of broker contacts nationally and would be happy to put you in touch with one.

PM me if your intrested, I will need a few more details.