Getting a Commercial Mortgage for Day Nursery childcare providers in the UK.
Obtaining finance can be a daunting but at Niche we can help you access to some great Commercial Mortgages suited for new and existing Nurseries & Nursery School business owners. The child care nursery business can be lucrative but its quiet possible you will need a commercial mortgage to get started or expand the sites from which you operate.
As a rule of thumb Commercial mortgages, such as those to fund a pre-school, become more readily available if you have first-hand experience of owing a business in the child care sector.
Normally as a start point you will be looking at between a 35% to 25% deposit. This is measured against the freehold going concern value and will be based on your experience in the child care nursery sector. More tolerance will generally be nurseries operating multiple sites.
Yours and the sites reputation with Ofsted can also play a part in the Underwriting decision as it will give an indication of your standing and likelihood of continued success.
Unlike a mortgage you may take on your own house a Mortgage for Day Nursery childcare businesses will normally be shorter in length with a 15 year term common.
Repayment breathing space in the form of ‘interest only repayment’ rather than ‘capital and interest’ may be possible until the venture establishes itself in the first 12 months.
Niche Advice offers appropriate advice to get a Commercial Mortgage for Day Nursery childcare providers. For more information please complete the Contact form on our website or call T: 020 7993 2044.
Author: Richard Stokes
Richard Stokes is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on on Mortgage and Insurance products.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage Advice and Insurance advice.