Funding options for lifestyle business

[GraemeP]

Afternoon, looking for some guidance if anyone can help.

There's a lifestyle type business I'm going to look at, that includes owners accomodation. The asking price is £1m, and if I sold up and cashed in some investments I could raise 25%. Typically the high street banks will only lend up to 60%, but seem risk averse when it's a new business direction.

Anyone had experience of getting hold of higher LTV percentages for this kind of thing?

[singlecoil]

I believe a certain amount has to do with the bricks and mortar part of the valuation, is that a high percentage of what you would be paying for the business overall?

[Frio3535]

One of my businesses was advertised as a lifestyle business with a business and 2 flats. My company purchased the business at 80%LTV and myself personally had a 2 year option on the residential properties. I think the best you'll get with high street banks is 70% of the business, goodwill, etc if you have no additional security. That's only if the business is a good one mind and able to service the debt plus cover existing living costs (plus a potential resi mortgage) - you might find 50%/60% is the most. My gut feeling if I put myself in your shoes is it would be beyond my means but that's just my feeling and happy to be proved wrong.

[GraemeP]

There are 2 dwellings in the sale (owners house and holiday let), plus a cafe. I've done a bit more digging and some business sellers will include some form of finance so worth me checking.

As mentioned, it's probably too rich for my means, but if there's revenue streams to cover the debt I would take on I'm convinced there's plenty of scope to increase revenue and OI looking at their current operation.

I will see what I can find out, thanks!

[Zoon]

What is the lifestyle in question?