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Author buying a house with business attached?
chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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19th Aug 10 at 22:13   View User's Profile U2U Member Reply With Quote

if you was to get a mortgage for a house that has a business attached to it would the mortgage be worked out from what you earn now or from what you would earn from the business aswell if you have the past 3 years accounts for the business?
Colin
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Registered: 4th Apr 02
Location: Drives a hire car
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19th Aug 10 at 22:25   View User's Profile U2U Member Reply With Quote

You thinking about buying out the local brothal???
Colin
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Registered: 4th Apr 02
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19th Aug 10 at 22:27   View User's Profile U2U Member Reply With Quote

Unless the whole lots considered to be a commercial property (i.e. a self contained flat above a pub or such like) then I cant see them taking projected income into account.
chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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19th Aug 10 at 22:28   View User's Profile U2U Member Reply With Quote

no its a dog boarding business
Colin
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19th Aug 10 at 22:35   View User's Profile U2U Member Reply With Quote

So what is it like then a residential property with a few kennels out the back?
chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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19th Aug 10 at 22:38   View User's Profile U2U Member Reply With Quote

well yes with a turnover of 75k
Colin
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19th Aug 10 at 22:41   View User's Profile U2U Member Reply With Quote

75k turnover from keeping folks muts when they go away on holiday........must be like 101 dalmations in that house

Do you not need to have a business plan or business loan then if its to be a registered business & have the house down as a business asset or something??
chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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19th Aug 10 at 22:46   View User's Profile U2U Member Reply With Quote

i dont know its something i said i would like to do in afew years if we can get some money behind us, but if we could find a ready made business and get the mortgage company to recognise the business turnover as potential income, thatwould make life a hell of alot easyer, dont know if it works like that though
Colin
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19th Aug 10 at 23:10   View User's Profile U2U Member Reply With Quote

Im mostly confused if it becomes a business premises or a residential home operating a small business

I think you'd best speak to a solicitor as its not going to be as straight laced as just getting a mortgage!!
Limecat
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Registered: 25th Jun 05
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20th Aug 10 at 00:20   View User's Profile U2U Member Reply With Quote

You wont get a mortgage whilst on benefits. It's the sub prime lot like you who are responsible for the down turn.

Get a job, stop sponging my taxes and try again in a few years?
John
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Registered: 30th Jun 03
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20th Aug 10 at 06:52   View User's Profile U2U Member Reply With Quote

75k turnover won't be much profit
AndyKent
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Registered: 3rd Sep 05
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20th Aug 10 at 07:44   View User's Profile U2U Member Reply With Quote

It won't work like that.

A past income with a previous owner doesn't guarantee that you will run the business in the same manner.

If it worked like that they'd be lending you a load of money whilst you shut down the business and lost all their cash.
stubs
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Registered: 30th Jun 02
Location: Bolton
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20th Aug 10 at 11:33   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by John
75k turnover won't be much profit


I was thinking that... sounds like it would be pretty long working hours and quite comitted, and I would imagine plenty of cost involved too
Cosmo
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Registered: 29th Mar 01
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20th Aug 10 at 11:36   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by John
75k turnover won't be much profit


Impossible to say really - they may have zero overheads, very little running costs, etc. and be making 60k a year.
John
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Registered: 30th Jun 03
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20th Aug 10 at 11:42   View User's Profile U2U Member Reply With Quote

I based my answer on the original poster, she won't have looked that far.
Cosmo
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Registered: 29th Mar 01
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20th Aug 10 at 12:04   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by John
I based my answer on the original poster, she won't have looked that far.


Well thats a given tbh.

What exactly are you purchasing here - a business with a house as part of its assets. Or a house and the business comes seperate?
chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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20th Aug 10 at 12:36   View User's Profile U2U Member Reply With Quote

they arnt really any over heads, its a family run business so no staff wages, only real cost is food and heating in the winter, they is even room to expand in the future, the business comes with the house
Cosmo
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Registered: 29th Mar 01
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20th Aug 10 at 12:54   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by chloe16v
they arnt really any over heads, its a family run business so no staff wages, only real cost is food and heating in the winter, they is even room to expand in the future, the business comes with the house


Arent really any, and then you name two.

What about insurance? Rates? Water? Cleaning products? etc. etc. It'll have plenty of costs no matter if they dont employ staff.

How is the deal structured - are they just setting a price for the house and the business comes with it? Or is the business increasing the cost of the house?

Only reason I ask is you will not get a standard mortgage on it if the business is included in the sale price.
Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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20th Aug 10 at 12:59   View User's Profile U2U Member Reply With Quote

You would also need special business insurance which probably won't come cheap, public liability insurance etc etc.

There are LOTS of things you need to consider.

As for it helping you get a morgage VERY unlikely in the current market unless you have a rock solid business plan and a bank willing to listen

stubs
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Registered: 30th Jun 02
Location: Bolton
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20th Aug 10 at 15:56   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by chloe16v
they arnt really any over heads, its a family run business so no staff wages, only real cost is food and heating in the winter, they is even room to expand in the future, the business comes with the house


yes but how many family members does it take to run this business? ...and at what rate will you pay them?

stubs
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Registered: 30th Jun 02
Location: Bolton
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20th Aug 10 at 15:58   View User's Profile U2U Member Reply With Quote

Sounds like more of an investment for someone who has the "cash" to invest, rather than borrow on the never-never
Toby
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Registered: 29th Nov 05
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21st Aug 10 at 08:13   View Garage View User's Profile U2U Member Reply With Quote

No mortgage company will offer you a mortgage based upon potential earnings with business attached or not you either need a larger mortgage to cover the cost which you will need to have a large deposit. Or you would need a business loan with a very carefully planned business plan to buy the business only and even then no guarantee. However this way I guess isn't a possibility because the business could then have to be sold seperatly and then you could run into issues with rates etc.
Bonney
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Registered: 14th Nov 04
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21st Aug 10 at 08:19   View User's Profile U2U Member Reply With Quote

On top of food, utilities, insurance etc you will also have to factor in vets bills. They aren't cheap!

Then there is the upkeep of the property, say if a fence falls down or a leak occurs.

Also, What if you want to go on holiday. You can't just ask the neighbour to pop round and feed you're dog. You will have to find someone to stay there and pay them.

You also need to think about the businesss in itself. People may only go to that place because they like the person or know them very well. It may well have a 75k turnover now but when you get it, Whats saying that the current customers will stay, they may go somewhere else as you can't offer the same service as them. So you will need to advertise and get you're name around to try and get the business up and running again.

I looked into buying a small company and to be honest, It's far easier to set up from scratch than get something that is already running (Imo) as if its already running, you may have to change a lot of things to get it running better and generating the business to make a good profit after paying all the overheads and unexpected things.

You wouldn't want to do it all for 1 at the end would you?
ste_p23
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Registered: 29th Dec 08
Location: Hindley,Wigan
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21st Aug 10 at 10:17   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by LETGSI16V
You wont get a mortgage whilst on benefits. It's the sub prime lot like you who are responsible for the down turn.

Get a job, stop sponging my taxes and try again in a few years?


Couldnt have said it better matey
SXI - Matt
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Registered: 8th Jul 07
Location: Leicestershire Drives: Corsa C SRI
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28th Aug 10 at 20:14   View User's Profile U2U Member Reply With Quote

I no some one who runs a buisness exactly the same as your refering to, family run just the 2 of them ect and granted they turn over alot but there are alot of out goings in this kind of buisness, and very long hours, up at 6 done by about 8 most people think its easy but it really isnt, having said that they love it so it dont matter, they also have cats to look after and a few of there own horses but still it isnt a easy as you may think, but all the best if you do go for it worth a try if thats what you want to do they have a good life from it

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