Many people are unsatisfied with their city jobs and long commute to work, and dream of living in the country and running their own business. How do you make this dream become reality?
One solution is to buy a home with a business attached. Bruce King, director of estate agents Chaffins said:
“As working life becomes more demanding, we have seen an increase in those looking to escape the rat race and buy a property with a business attached.”
Popular Rural businesses include bed and breakfast, holiday apartments, smallholdings and livery yards. A rising business is renting out luxury yurts to upmarket campers.
Homes with a business attached are known as semi-commercial, or mixed-use properties. Non-cash buyers will need to take out a commercial mortgage rather than a standard residential mortgage. They will also need a business plan that details the profit forecast of the business and be able to prove to the lender that the business income will easily cover the mortgage repayments. To provide this information will require access to the existing business accounts.
Lenders may also want the applicant to have experience working in a business relevant to the business they are purchasing.
Lenders will normally lend up to 65% of the purchase price of both the property and the business. Commercial mortgage interest rates are more than standard residential mortgages.
If the figures add up, then moving to the countryside and operating a rural business makes financial sense.