Commercial Property Profiles Post Office

Mortgage Quote Line

0845 108 0505

• Mortgages
• Credit Cards
• Loans
• Investments
• Life Insurance
• Home Insurance
• Insurance

Commercial Property Profiles Post Office

Buying a Post Office can be a shrewd business investment, as can setting one up as a franchise. Very often, the Post Office is at the heart of the local community. In urban areas a Post Office franchise can make good business sense, whilst in rural areas of the country sub-postmaster agencies can provide Post Office services alongside village shops (assuming that the Post Office Ltd. agree.)

Currently, the Post Office industry is undergoing a major period of ‘reinvention’ that is seeing numerous branch closures in urban areas. Rural areas may also see closures if the government revokes its ‘no avoidable closures’ for rural post offices clause. However, Post Office franchises and sub postmaster agency agreements remain in favour with many lenders.

A commercial mortgage is one option in which an entrepreneur could raise the finance to pay for a Post Office business. Commercial lenders will generally provide 85 per cent of the purchase price of a business, although this does vary depending on the value of the property and the maximum loan-to-value ratio of the individual lender. Generally, the lender of a commercial mortgage will require a deposit of between 20 and 30 per cent, and will need trading accounts (if the business is established) or income projections (if the business is a start-up.)

Any commercial lender or high street bank will need the following before they consider providing a commercial mortgage for a Post Office:

• The trading history of the business/projected income
• The deposit available
• Your experience
• Residential space
• Credit history

The lender will also need to know where and what type of Post Office you intend to operate. For instance, rural sub postmaster agency Post Offices cannot be sold without official agreement from the POL (Post Office Ltd.) The lender will need proof that the POL has agreed to appoint you as sub postmaster. Franchises in urban or suburban areas are generally more popular with mortgage lenders.

If you are looking to borrow money for any type of property for any purpose, or for business or mortgage advice, please complete a Mortgage Enquiry Form below and we will arrange for one of our specialist mortgage advisers to contact you.

Alternatively, you can call us on 0845 108 0505.