Commercial Mortgage Help

GTL_2

Hi,
My partner and I are keen to start a new business in our town offering 3 main services: Sunbeds, Laundry and Sports Supplements. There is nothing at all in our area which offers all three under one roof and we believe that the 3 services compliment each other and will help maximise footfall into the shop.
We have found a shop that would be ideal for us, however it has been empty for years and is in need of renovation. It also has an upstairs with the potential for two 1-bedroom flats. It's been up for sale for a few years for £65k but the estate agent has said the seller is prepared to go down to £40k. Also because it's classed as being in a 'deprived' area there would be council and business grants available to us (external work, 30% up to £15k, internal work 30% up to £15k).
We would like advice on the type of mortgage we would need for this property. Would it be commercial or buy to let because of the flats, or is there an option to have a split commercial/BTL mortgage? How much deposit would we need to come up with and how easy would it be to obtain a mortgage on the property?
Any advice appreciated, thanks!

chalkie99

GTL wrote: »

Hi,
Sunbeds, Laundry and Sports Supplements. There is nothing at all in our area which offers all three under one roof and we believe that the 3 services compliment each other

Really? !!

I can't see any connection at all so it's no wonder no-one else is doing the same combination. Sports supplements seem pretty well carved up by gymnasia and I don't think the other two are all that profitable.

Other than that, my understanding (though I may be wrong) is that commercial mortgages are generally not available for amounts less than £100,000 and if the property requires renovation it may well not be mortgageable anyway.

At best - Deposit = large
Mortgage = hard

You could ask over on the mortgage board where the mortgage brokers hang out.

Sorry it's probably not what you want to hear.

Annisele

What exactly does "potential" for two one bed flats mean? Has planning permission for them been obtained?

And how much "renovation" are you talking about?

It also looks as though you're planning into going into several unrelated businesses at once. Assuming your first three are related (though like chalkie99 I'm not convinced), you're adding property development to the mix. Most successful businesses start with just one area and add others later. Unless you already have experience with all of them, trying to learn them all on the job sounds tricky.