Lease, rent or buy business premises?

edited 30 November -1 at 1:00AM in Small Biz & Charities' MoneySaving
2 replies 1.8K views
juelsjuels Forumite
3 Posts
edited 30 November -1 at 1:00AM in Small Biz & Charities' MoneySaving
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.

Replies

  • Savvy_SueSavvy_Sue Forumite
    43.4K Posts
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    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!
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  • 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.
    I have links to financial and bankruptcy advisors

    Anything I post on this forum is for discussion purposes only. Feel free to PM me about any posts.
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