Lendus.

Commercial Mortgages for Restaurant Property

From freehold restaurants in prime locations to investment acquisitions of established food and beverage premises, we match borrowers with lenders who understand the unique dynamics of the restaurant property market.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

5.5% – 8.5%

per annum

Term

5-20 years

Max LTV

Up to 65%

Amount

£100k – £5m

Compare restaurant premises commercial mortgage rates

Check Eligibility

Mortgage types available

Owner-Occupied

Rate
5.5% - 7.5%
Term
5-20 years
Max LTV
Up to 65%

Best for: Restaurant operators buying the freehold of their own trading premises — removes rent exposure and creates a capital asset

Investment

Rate
6.0% - 8.5%
Term
5-20 years
Max LTV
Up to 60%

Best for: Investors acquiring restaurant premises to let to a food and beverage operator under a commercial lease

Refinance

Rate
5.5% - 8.0%
Term
5-20 years
Max LTV
Up to 60%

Best for: Existing owners refinancing to improve rate, release equity for expansion or refurbishment, or restructure legacy finance

Key considerations

Eligibility requirements

Ready to compare rates? No credit check, no obligation.

Check Eligibility

Market context

The UK restaurant and food service sector is estimated to be worth over £100 billion annually, with approximately 88,000 food service businesses operating across the country as of 2026. Despite significant headwinds from energy costs, food price inflation, and post-pandemic trading pressures, the sector has seen meaningful recovery in dine-in covers, particularly in premium and experiential dining categories. Ghost kitchens and dark kitchens have created a new asset sub-class, though most lenders approach these with caution. Prime restaurant freeholds in London and major UK cities continue to be sought after by both operators and investors as a resilient long-term asset class.

Frequently asked questions

Is a restaurant treated as a commercial property or a business for mortgage purposes?
It is both — lenders assess restaurant mortgage applications using both property valuation and business trading performance. The property is valued by an RICS surveyor, but lenders also require trading accounts to understand the sustainability of the business occupying or leasing it. The relative weighting between bricks-and-mortar and trading value varies by lender.
Can I get a commercial mortgage for a leasehold restaurant?
Yes, but the terms depend on the length of the unexpired lease. Most lenders require a minimum of 70-85 years remaining (or a lease that extends well beyond the mortgage term) to lend on leasehold. Short leases significantly reduce lending options and may require bridging finance or a lease extension before a standard commercial mortgage becomes available.
What insurance does a restaurant mortgage lender require?
Lenders will require full commercial buildings insurance (noted in the lender's interest) as a minimum. Many will also require business interruption insurance and public liability insurance. If the restaurant serves alcohol, a Premises Licence under the Licensing Act 2003 is also required and must be maintained — loss of licence would constitute a breach of mortgage conditions.
How do lenders view a restaurant that primarily operates as a takeaway?
Hot food takeaways (historically A5, now Class E or Sui Generis depending on local authority) are assessed slightly differently. They may face planning restrictions on operating hours, and some lenders are cautious about properties where the planning use is restrictive. However, well-established takeaways with strong revenue can be financed — a specialist lender with experience in licensed and food premises is usually best placed.
Can I use a commercial mortgage to open a brand-new restaurant in an empty commercial unit?
A standard commercial mortgage is not typically used for this purpose — lenders require an operating business or established tenant. For fit-out of a new restaurant from an existing commercial shell, you would more likely need a combination of a commercial mortgage on the property and a separate business loan or fit-out finance for the kitchen and interior. Development finance may also be appropriate if structural works are involved.

Related property types

Pub Hotel Shop

Guides and resources

What Is a Commercial Mortgage? Commercial Mortgage Rates Commercial Mortgage vs Bridging Best Commercial Mortgage Lenders

Ready to finance your restaurant premises?

Compare rates from 200+ lenders. No credit check.

Check Eligibility →
Check Eligibility — 2 min, no credit check