Buy a business or sell a business. Search 53,750 businesses for sale. You can also buy a franchise opportunity or find a business broker.

  • You are here:
  • Forum >
  • CATTERY BOARDING COMMERCIAL AND RESIDENTIAL PROPERTY - WHAT PORTION IS BORROWED AS COMMERCIAL AND WHAT IS RESIDENTIAL.

CATTERY BOARDING COMMERCIAL AND RESIDENTIAL PROPERTY - WHAT PORTION IS BORROWED AS COMMERCIAL AND WHAT IS RESIDENTIAL.

wendy hall
Posts: 1
14/04/2009 18:20:57
Hi, Just wondering if anyone can give me some advise. I have been dreaming of buying a cattery for some time - now I find myself pursuing this more - why not me?!! Can anyone advise if 2 mortgages are required to buy a cattery with residential house or just 1 and if just 1 is required - what and how do they base the mortgage loan on.
I am specifically looking at one approx 100 miles away - the price is 495 and the annual turnover is 80k - profit I am led to believe is 70k.
I own 2 houses - both mortgaged - 1 property I owe £10,000 on and is valued at £110,00 and my residential property is valued at £140,00 and I owe 42,000 on it. I would be more than happy to re-mortgage for a large deposit and rent my property out.My credit rating is excellent.Any advice at this stage would be greatly appreciated.
Thankyou in advance.
Wendy

2 Replies
naushad rahman
Posts: 4
16/04/2009 00:16:24
Hi Wendy,
You have various things which you need to consider: whether you need two mortgages or one and issues relating to what the mortgage depends upon comes down to affordability. Your good credit rating is obviously essential but there are a whole host of issues which you need to bear in mind when buying a business. For any off-the-cuff legal advice please call me on 07813035032 (or visit www.corporatelegal.co.uk) I should be pleased to help. Regards Naushad Rahman
jane Lewis
Posts: 1
28/10/2009 20:21:56
Hi, the vendor will indicate the split between the residential property and the cattery business. It is usual to buy the cattery business using part of your deposit money. Then to take out a normal domestic mortgage on the residence.
It was always usual to have a deposit of 25% of the total purchase price in order to secure lending from a bank etc. of the remaining 75%. But i believe lending institutions are looking for 50% deposits in the current financial climate.
Regards Jane

Don't Dream It. Do It.

Browse articles, guides and case studies on how to buy a business and more.

View articles >>

The material contained in this Forum is provided on an "as is" basis and without warranty of any kind. Dynamis plc. shall not be liable for any damages of any kind from the use or mis-use of this Forum. The views expressed in this Forum are the views of the posting users and not of Dynamis plc.

For further details relating to Forum use, please see our Terms & Conditions

Change country Close

If you haven't been brought to the right country version of our site please select the correct one below: