Raising deposit for commercial business from equity in my house

[Kccwsouthwest]

Hi I have a 500k house with 138k remaining on mortgage . What’s the best way to raise £270k from my equity for a commercial deposit on a business thx
50% business share with my cousin on commercial going concern. The market price of the business is 1.5mil LTV 70% therefore need to raise £450k plus 80k fees @ 50% share means I need to raise a deposit £265k
The turnover from the business is 200k and profit is 140k
Thanks for advice

 

[Mark T Jones]

Remortgage or second charge loan

@tony84 knows about mortgages
.
I know about charge commercial loans

 

[UKSBD]

Could you sell the house and move in to rented temporarily?

 

[Kccwsouthwest]

Could you sell the house and move in to rented temporarily?

Thanks had thought about that but the wife wouldn’t agree !

 

[Will.Lu]

Thanks had thought about that but the wife wouldn’t agree !

haha, women always have the last word.

 

[pentel]

The market price of the business is 1.5mil

The turnover from the business is 200k and profit is 140k

Hopefully there are substantial tangible assets in the business (freehold property?)

Is the 140k profit after paying wages?

 

[Kccwsouthwest]

Hopefully there are substantial tangible assets in the business (freehold property?)

Is the 140k profit after paying wages?

Hi
Wardens park lodge approx £90k, quality toilet and shower block
Shop
Planning for additional Lodges

The 140k is after wages of on site warden cleaning etc approx 70k

Thanks

 

[Mark T Jones]

Keeping away from the value / due diligence thing (which hopefully you've engaged a professional for) - it's common to fund these acquisitions from the business assets, if there are sufficient to cover it?

 

[Annoying Donkey]

haha, women always have the last word.

Wifey would disagree...!

 

[ethical PR]

Hi I have a 500k house with 138k remaining on mortgage . What’s the best way to raise £270k from my equity for a commercial deposit on a business thx
50% business share with my cousin on commercial going concern. The market price of the business is 1.5mil LTV 70% therefore need to raise £450k plus 80k fees @ 50% share means I need to raise a deposit £265k
The turnover from the business is 200k and profit is 140k
Thanks for advice

Personally I wouldn't put my home at risk particularly when going into partnership and for something that has such a low turnover/profit .

Why don't you apply for a loan?