I would like to buy a pub but have no savings and poor credit ratings?

Posted on 8 November 2007

Hi Katie, I would like to buy a pub, but don't know the best way to go around it. The tenant at the moment would like £25,000 and there is 7 years left on the lease. I live in private rented accommodation, and my credit rating is poor I have 1 CCJ but have never really had any credit before. Also i have no saving to put towards this. Please help.

Roxanne

Dear Roxanne,
 
I'm not sure if this is the right time for you to do this, to be honest. As much as it seems a good cheap deal, property prices are not expected to rise this year, in fact in most places they have fallen. Commercial property has dropped considerably in value recently, the Sunday Times money section yesterday's showed that commercial property funds have dropped in value from 5% to worse than -8 in some cases.
 
If you had a substantial deposit which you could afford to gamble, or your own residence with lots of equity, and a squeaky clean credit record you might have been able to get the mortgage to chance this one, but I'm afraid that this is probably not the right purchase for you at this time.

Katie

Category: Bad credit, First-time buyer, The application process explained

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question