Pub Funding FAQs

How much can I borrow?
If the business is being acquired on a going concern basis, the purchase price will include fixtures & fittings and goodwill. We can obtain up to 65% of the purchase price, or going concern valuation whichever is the lower.

If borrowing is restricted to the property value alone, sometimes called the Bricks and Mortar Value, we can obtain up to 70% of the valuation.

All subject to meeting the Lenders serviceability criteria.

What are the repayment terms?
The term can be arranged to suit your circumstances, 20 years is typical, but we can arrange up to 25 years.

What are the interest rates?
This largely depends on the quality of the pub, the experience of the applicant, loan to value and the strength of the accounts. We can provide a written illustration on request.

What costs are involved?

  • Valuation fee of between £500 and £2000 (plus vat). The variation is due to the type of valuation, value of premises and location.
  • Bank arrangement fee will be between 1% and 2% of the loan. Often this can be added to the loan on completion
  • Land registry fees and disbursements in the region of £400
  • Legal fees (these will vary from firm to firm)
  • Stamp duty land tax (SDLT) will be payable on purchases. Please check with your solicitor
  • Broker Fees - Typically 1% but not payable until deal completes.

What are the timescales?
In most cases, we can obtain an agreement in principle within 48 hours.
A valuation will take up to 2 weeks to arrange and complete
The rest is dependent upon the speed of your solicitors (and sellers solicitors if a new purchase).
You should set aside up to 8 weeks for the whole process of enquiry to completion.

What do I do next?
Call us, email us, or submit an online enquiry request.
One of our experienced consultants will then contact you and discuss your requirements in more detail.

Please call us on 0115 9849800 or complete our enquiry form.