Selling house to buy business

JCR1987

Hi all,

This is a purely hypothetical question as we've not even thought about what we want to do yet. However, my question is this:

If we wanted to buy a business in, say, Wales and we don't have any funds to do so outright, would it be viable to sell our current house (with approx £30k equity), buy an existing business, with its own accommodation included, and then pay a mortgage on that business?

All pointers/criticism/positives welcome.

Cheers,
JR

InsideInsurance

You obviously can if you want to.

The obvious negative is if your business fails then not only do you lose your income but also your home.

steve1980

Would it be viable? Only you can answer that question.

Annisele

My first thoughts are that £30k of equity isn't going to be enough for you to buy much of a business. As a general, very rough guesstimate, if you're buying a business banks like you to stump up about a third of the capital yourself.

If you had a strong track record in the business you were going into it would help a great deal. However, you'd still need to persuade the bank that the business you were buying could definitely support your mortgage payments - and a strong and successful business could well be out of your price range.

gingerandrubarb

You can take out additional funds on your current mortgage especially since you have equity. How much would you hypothetically need for this business? x