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kellydmitchell kellydmitchell is offline
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Join Date: Apr 2005
Posts: 3
Question business tied to house

Hi Guys,

New to this forum. I am interested in staring my own boarding kennels with some pet retail and grooming on the side. The issue is that the business would also be my home. Firstly i am unsure whether i can secure a larger mortgage - looking for around 130-160k as it is a business, or if i can only borrow the usual 3x my salary and make up the rest with a business loan, or whether the whole lot would be a business loan. Any ideas, advice gratefully received.
Thanks,
Kelly
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kellydmitchell kellydmitchell is offline
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Join Date: Apr 2005
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has no-one any ideas?
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Ian J Ian J is offline
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Join Date: Sep 2004
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It isn't my field of expertise but I believe that if the residential part of the building is more than 40% of the total it will be treated as residential and not commercial.

Any enquiries about commercial mortgages I normally field to a friend who is an expert in this field so if you need help have a look at his website here and contact him directly.
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shamrocker's Avatar shamrocker shamrocker is offline
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Location: UK
Posts: 858
The best bet is to speak to your bank about this. I just recently bought a house for the first time and was told that the amount of capital they will lend will be based on how much I can comfortably pay back each month - taking into consideration all incomings against all outgoings. The value of the property will also be a factor. I would imagine the property could be financed with one loan and a separate business loan would be needed if you need more capital.
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Shane
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amz amz is offline
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Join Date: Apr 2005
Posts: 117
Be careful how you proceed. If your taking out a business loan to pay the mortgage does this mean your claiming the mortgage as a business expense? If you do that Im sure youll be charged capital gains tax if you ever sell the property.
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MarkD MarkD is offline
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Join Date: Mar 2005
Posts: 26
One option would be to get a usecured personal loan before you start or borrow from friends,family etc or get a grant. But before anything else you need to do your market research, check out the competition etc. Will what you can charge x number of places pay any loans back!

hope this help
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charles-b charles-b is offline
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Join Date: May 2005
Posts: 27
watch it!!

welcome to nightmare city. dogs and neighbours dont mix. bording kennels are getting picked on by local authorities, planning laws etc.
Mixing home and work financially is also very hard and banks hate it as it is very difficult to turf you out in the street if the company goes belly up. They also base their lending on income and with a new business with dodgy income...... you will probably end up with something too small to be practical. Also if you have to move or get bigger or smaller shifting house and business, stamp duty etc is a big problem
why not play it cool and slow. take a small shed on an industrial park or a store in a less favoured area. (good for grants and cost and you wont really get much passing trade anyway).
do the grooming etc and dream.
that way after a year or so you can have proven income and a client base for the kennels built up before you approach the bank.
and you have a way of paying the morgage day one.
good luck
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kellydmitchell kellydmitchell is offline
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Join Date: Apr 2005
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Thanks very much for all your replies

It does seem that i have chosen a difficult path to tred but i will get there. Your idea about renting a small space is one that i hadn't really considered but may well be a feasible option, something else to look at! I think that i definately have to do a bit more research and will probably start of with a doggy dare care to get my toes wet and start building up clients. Now i am off to start on my business plan/ forecast etc and no doubt will have several more questions along the way. I would appreciate your insights into anything else that comes up.

Thanks
Kelly
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charles-b charles-b is offline
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Join Date: May 2005
Posts: 27
no problem, try day care im sure there is a market for a doggy pamper day as a gift. hey you know that could be a good business as a sort of gift to a dog lover. advertise in petshops. not a bad idea actually now i think about it . send us a bottle of wine if you make it big time
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