UK Restaurant Mortgages

Experience and advice to clients in structuring commercial property deals such as commercial mortgages for Restaurant Refinance and Refurbishments.

Our commercial property mortgage consultants all have backgrounds in the banking sector and can offer added experience and advice to clients in respect of structuring commercial property deals such as commercial mortgages for Restaurant refinance and purchase.

Acceptable security

Almost all commercial property is acceptable, this includes:

  • Restaurants
  • Restaurants as part of a Pub or Hotel.
  • Restaurant with living accommodation above.

Restaurant Commercial Mortgage Application

We have access to a wide range of Restaurant Commercial Mortgage lenders, with some offering Adverse Credit Commercial Mortgages enabling us to match the client’s UK Restaurant Commercial Mortgage requirements to the most appropriate lender. At Sterling Capital Reserve, we are able to source a wide range of innovative and competitive commercial property finance packages for hotels, pubs and restaurants.

The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

Case Study 1 – Restaurant Purchase - £158,000

Area - Restaurant in busy Derbyshire Market town

Experience chef wanted to buy his own restaurant and was willing to sell his home and move for the right business. The Clients existing bank was reluctant to help above 60% Loan to Value.

Restaurant Commercial Mortgage Solution:

  • Mortgage of £158,000
  • Loan to value 70%
  • Repayment term of 25 years.
  • Interest only first 12 months.

Case Study 2 - Hotel Refinance & Refurbishment - £750,000

Area - Commercial Hotel in busy coastal town, Kent

Our client wanted to convert some of the Hotel's outbuildings into Conference Rooms and finish off a general refurbishment programme. The existing bank loan facility had only 8 years to run.

Hotel Commercial Mortgage Solution:

  • Mortgage of £750,000
  • Repayment term of 20 years
  • Repayments on the new mortgage were actually less than the existing facility, due to 'stretching' the repayment term.
  • At bank base rate plus margin 1.5%

Case Study 3 - Hotel and Restaurant - £250,000

Area - Hotel & Restaurant in a busy Market Town, North Wales

The client was seeking funds to extend the Restaurant where demand was very strong. Existing bankers were not being overly helpful; there had been a recent change in Manager and the new incumbent seemed cautious.

Hotel and Restaurant Commercial Mortgage Solution:

  • £250,000 to repay existing borrowings and cover the extension costs.
  • A 15-year repayment facility was agreed at bank base rate plus margin 2%.

Case Study 4 - Hotel and Holiday Lets - £1,000,000

Area - Purchase Cumbiran Country House Hotel plus a number of bungalows in the grounds.

The existing site was not being utilised to its full potential. Our client's plans included provision of conference facilities, wedding venue as well as more actively marketing the site as a holiday location.

Hotel Commercial Mortgage Solution:

  • A 15 year repayment facility was agreed at bank base plus margin 2%.

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.