Pubs | Bars | Restaurants | Hotels
So you’re trading well in your lease, would the owner sell the freehold? Acorn.finance have funded hundreds of sitting tenants in more than 20 years, often at 100% of purchase price.
Freehold purchase for sitting tenants
Funding for sitting tenants able to buy their freeholds from private landlords or pub companies. Since 1997 Acorn.finance have pioneered this type of purchase, helping hundreds of customers secure their freehold with funding of 100% of the purchase price. Whats more, in most cases the mortgage repayment is much less than the rent was previously, especially so for tied leasehold pubs.
Not only are we the experts in this form of commercial mortgage but we offer a free assessment of your freehold value, what you should offer and what we can raise for you.
With current uncertainty in the commercial real-estate market there’s never been a better time to make an offer and secure your freehold.
Closed units and disposals
Pubs, hotels & restaurants without the requisite accounts
Sometimes you find the perfect business but the current owners just are not trading it to give us the proof we need that you can repay a commercial mortgage.
That can be for a number of reasons;
- The unit is closed
- The unit is being run by tenants or relief management, meaning that the vendor does not have access to the accounts (this is the case when a pub company is selling)
- The unit has under-traded, due to the retirement of the owners or ill health
- It’s a brand new site being developed
Whatever the reason, as long as you can produce a comprehensive business plan (we can help with this) then the funding can be arranged to make the purchase.
Over the years we’ve known customers double the value of outlets by buying at the very bottom of the market and being able to trade them successfully.
The failure of the previous owner does not need to make a pub, hotel or restaurant site unviable, it may mean that they had the wrong business model or were the wrong operators.
If you are the right operator with the right plan – funding will be available.
Freehold business purchase
Buying a freehold pub, restaurant or hotel
Why should you look at buying a freehold pub, hotel or restaurant rather than saving a lot of cash and buying a lease?
A freehold business includes the property, the “bricks and mortar” that you’ll be trading from. A commercial mortgage can be secured on the property (a lease is typically not considered suitable loan security). This allows you to borrow over a longer term, with lower monthly payments than typical lease rental payments.
You might need less deposit than you expect, as the best lenders in the market will lend against the Market Value (MV) which includes goodwill, rather than just the Closed Value (Bricks and Mortar). For the right proposition, it’s possible to fund up to 75% of MV.
Leases can come with other clauses limiting your ability to trade profitably. From upward only rent reviews to tied leases, there are a variety of mechanisms designed to help your landlord grow richer and make you work harder.
Leaseholds and tenancies
Buying a lease or tenancy for a pub, restaurant or hotel
Leases and tenancies have traditionally been the entries to the licensed and leisure trade. Lower cost than buying the freehold of the premises, a lease gives access to locations with much better trade than would be affordable on a freehold.
Whilst funding on an unsecured basis for leased businesses has always been difficult, if we can satisfy a lender that repayments can comfortably be met then funding can be arranged.