commercial mortgage

fawlty_towers

Hi all

Just need a bit of advice before I consult and get laughed at!!!

I have been a hotel financial controller for several years in various sized hotels.

I have seen a small hotel for sale in a lovely building. It is on the market for around 700k but I am sure it is negotiable. Iam currently waiting for the accounts ( can only find balance sheets on companies house) and at the moment I am only aware of that it turns over 210k net sales. I have written many many business plans and budgets and see opportunities from experience of areas to grow the business. Regardless before all that I need to try and understand if I could get funding? I have about 97k currently tied up in my house which is on the market ( but god knows how long that will take) .

obviously large gaps in data here and a business plan and some running costs information would help but questions I am thinking about are a) how much could I get from a commercial mortgage is any of this possible. b) what brackets would the % of borrowing be (7-15%) and does anyone know lending lengths? (25 years?)so when I have the accounts information I could build a budget and full business plan accounts.

I do have investment opportunities I can borrow on frompersonal contacts that would invest at a reasonable rate but then I would have to fit that and a commercial mortgage into my workings.

If what I read is right 75% Ltv then 525k would be the figure I could get???

Hope this makes sense.

Any help would be great. If its a laughable idea then please laugh nicely.

many thanks

J

Thrugelmir

Commercial lending is totally different to residential. You'd need a business plan that stacks up. Given you want to service and repay over £500k of debt for the property alone. Let alone working capital for the business.