The Client:
There are two clients in this situation. One owns and runs a successful business. The other is the general manager for the Pub / Restaurant they are looking to buy. They have a good income and they have no bad credit issues. One applicant owns a residential jointly with her husband, the other lives with her mum.
The Scenario:
They are looking to purchase the leasehold of the business one of the applicants is already the general manager of. They are going to purchase this into a new company and continue running it as it has been. The freehold is owned by someone else, so there will be no physical security for the commercial loan.
The Solution:
Being a whole-of-market Broker, we have the knowledge to know that some lenders will allow a commercial loan to buy the leasehold of a business, without tangible security. The lender did ask for the client that owns a residential home to put her house up as security. However, because the husband is a joint owner and wasn’t involved in the company purchase, this wasn’t necessary. The option that was offered was a Recovery Loan Scheme (RLS) loan backed by the government.
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Summary:
It is possible to get lending on extremely complicated setups, and situations that would seen as undesirable to most lenders.
Key things to consider for foreign income:
- Some lenders will allow the purchase of a leasehold company
- Some lenders will offer commercial loans without tangible security
- Some lenders will allow loans backed by the government
If you are interested in finding out more about ways in which you could potentially purchase a leasehold pub &/or restaurant then either call us today on 03303 112 646 to speak directly with one of our CeMAP qualified Mortgage Advisors. Alternatively, simply complete this short online form to send us an enquiry and one of the Team will call you asap.