Financing a business bought with its premises
Buying a pub, hotel, care home, nursery, garage or shop as a going concern means the lender is financing a trade and a building at once. It is a specialist corner of commercial lending with its own valuers, lenders and rules.
How it is valued
A trading business with property is usually valued on a going-concern basis: what the business and building together are worth to a buyer who continues the trade, based on its adjusted profit (EBITDA) and a sector multiple. Lenders may lend on that, or only on the bricks-and-mortar value, which can be much lower. Which basis, and which lender, decides whether the deal works.
Lending terms
- Loan-to-value 60% to 70% of going-concern value, sometimes 70% to 75% for care homes and dental practices, lower for pubs and hotels.
- Terms 10 to 25 years, repayment.
- Rates from around 7% at specialist high street teams to 9% or more at specialist lenders.
- Serviceability tested on the business's adjusted profit, with an allowance for a manager's wage if you will not run it yourself.
What lenders ask for
- Three years' accounts for the business you are buying, plus the seller's management accounts.
- Your own relevant experience: lenders are wary of first-time operators in pubs and hotels; more relaxed in care and childcare with the right registrations.
- Regulatory approvals: CQC (care), Ofsted (childcare), premises licence (pubs), and evidence they will transfer.
- A business plan showing how you will maintain or improve the trade.
- Personal guarantees and, often, a debenture over the trading company.
Sector notes
- Pubs: free-of-tie freeholds with food trade are financeable; wet-led, tied or struggling ones are hard. Lenders want experience.
- Hotels and B&Bs: occupancy and RevPAR history; owner-occupied guest houses with residential accommodation may be partly regulated.
- Care homes: CQC rating, occupancy, fee mix, staffing. Strong demand from specialist lenders for good-quality homes.
- Nurseries and dental practices: among the easiest trading businesses to finance; several lenders offer up to 80% or more for dentists.
- Garages, workshops, convenience stores: financed on accounts and the property; watch environmental issues (fuel tanks) and lease terms for concessions.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Can I buy the business but lease the property?
Yes, and then you are looking at a business loan rather than a commercial mortgage, on different terms. Many lenders prefer to see the freehold as security.
What is the going-concern value?
The value of the trade and the property together, assuming the business continues. A pub might be worth £600,000 as a going concern and £350,000 as a building; the difference is why lenders are careful.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.