Lease, rent or buy business premises?

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

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,



  • Savvy_SueSavvy_Sue Forumite
    43.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    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!
    Still knitting!
    Completed: TWO adult cardigans, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees, 2 sets of handwarmers, 1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 3 balaclavas, multiple hats and poppies, 3 peony flowers, 4 butterflies ...
    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
  • 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.
This discussion has been closed.
Latest MSE News and Guides

PCR tests to end for fully vaccinated

Travellers returning to England in Oct

MSE News

Free Homebuilding & Renovating Show tix

London, Harrogate & Shepton Mallet

MSE Deals