Commercial Business Mortgage Advice Needed

missjones12

Hi all,
I am looking for advice,
My goal is to buy a small holding with land to run land based activities (sport) and keep livestock to sell for meat.
I'm looking in the North Welsh area at a house with around 10-20 acres, around £180,000-200,000. (which is the same value as a terraced house in my town)

I want to run a residential fitness camp, for around 4-6 people at a time, the figures stack up in order to pay for the mortgage repayments, I will run week and weekend retreats with B&B,
I have worked in health and fitness since 2003, as well as working in B&B's, hostel's and farms so I feel I have a good knowledge of each aspect, apart from writing a business plan and starting the business myself, but I have helped marketing and planning and building a business once started.

I have worked seasonally over the past few years, travelling to gain further experience and qualifications which has brought me to this goal in life now, but it also means that I have no continuous income (and I am unemployed now) so I wouldn't be able to get a residential mortgage, (I may have a huge cash deposit though)

Could someone please explain how a commercial business mortgage to purchase the property works, (I guess similar to a B&B business) what do I need to consider in terms of business plans, income, values, how can you prove that you are going to be able to cover the repayments? or does it work on the value of the property mostly?


Would it be more beneficial to start a business in a fitness retreat through a rented property to have financial documentation of the business before lenders will accept for my own property?
Although I wouldn't strictly be able to run the type of business I wish as I have plans on planting trees to use and to build outside areas specific to fitness.

Also do you need to get planning permission for B&B type residential business? or from the local council?

I'm not sure how it all works, or if it is even possible, but the repayments would be lower than the cost of rent of a small holding, and maybe around half of that of a commercial building let which I could build a gym in... and the value of the property would be able to pay off the mortgage if unsuccessful..

Many thanks all

ACG

Sounds like a great idea!

Its not really my bag, I have only done one or 2 commercial mortgages and they were not for anything like this.

Have you spoken to a commercial mortgage broker? I would imagine a good one would help you put what is required together.

amnblog

If your bank will assist you they will undercut anything a commercial broker can offer.

It sounds like you need to do a lot of research and business planning before you are ready to seek lending.

missjones12

thanks ACG.
No I haven't to be honest, i'll try and find one,

missjones12

amnblog wrote: »

If your bank will assist you they will undercut anything a commercial broker can offer.

It sounds like you need to do a lot of research and business planning before you are ready to seek lending.

yes I am, but i wanted to see if it was a possible option,
i have time to put the hours in to do all of that, but if i could find relevant advice n info it would help the whole process (hopefully)

amnblog

This might be a good place to start

https://www.enterprisenation.com/users/new