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Holiday Let Mortgages

Holiday Let Mortgages

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        • Holiday Let Mortgage Broker

          We have been specialising in holiday let mortgages since 2006 and have accumulated a deep understanding of all types of holiday let finance.

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        • Holiday Let Mortgages is an Independent Mortgage Broker specialising since 2006 in mortgages for holiday let properties.

          This means that we are free from any outside influences in terms of where we can go to get you the best mortgage rates and deals available.

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Specialist INDEPENDENT mortgage brokers – ☎ 020 8301 7931

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        • HOLIDAY LET GUIDES

          We have a lot of resources to help you with your holiday let. There are quite a few guides plus many articles on how we can help people successfully invest in a holiday let property.

        • Holiday Let Mortgage Guide
        • Holiday Let Mortgage Criteria
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        • Holiday let property guide
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        • HOLIDAY LET ARTICLES & CASE STUDIES

          There is lots of useful information in our article and case study sections. Built up over many years we share new developments in lending attitude and also client case studies for the more difficult holiday lets!

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        • Q&A

Can I purchase a holiday let complex and live on site?

You are here: Home / Q&A / Can I purchase a holiday let complex and live on site?
Holiday let cottage UK

Q

My wife and I are considering a lifestyle change, moving away from our corporate city life and into the country. I am in Business Banking and my wife works for a company that advises on corporate takeovers. We are nowhere near retirement age, so will need a gainful occupation. In our minds there is no point moving to the country and commuting back into to the city, re-joining corporate life. If we sold our house, the net proceeds would be circa £1M.

We are thinking of buying an existing business, but most of those that we have seen don’t fit our “skill set”; however, we have seen what is described as a “holiday let complex” with a large main house for owners’ accommodation being sold through a specialist Estate Agent.

The holiday let side of the complex consists of 6 beautifully converted stone barns, with planning permission to convert the last remaining barn, into holiday accommodation. The vendor lives at the holiday let business and is using it in the same way as we intend to use it, so it has a trading history and accounts. We would be looking at converting the final barn at some point.

The price is £1.7 M and it is located in Devon

Our question is:
Can we get a mortgage to purchase this holiday let complex when we will have no other form of income and have no previous experience in the hospitality and tourism industry? Jon

A

Yes, you should be able to get a mortgage to purchase this holiday complex without direct experience in this industry.

You are quite right in what you say, some businesses require particular skills that one either has or has not and the success of these businesses is wholly dependent on the former. This is an area that some people make a serious error in and things go bad quickly. In the case of a ‘lifestyle change’ from the corporate world to running a holiday let business, holiday let complex or self- catering business as they are sometimes known, our lenders are more concerned with transferable business skills.

Because the income from holiday let business operation will be the only income available for servicing the loan, the lender is going to firstly want to see a set of full accounts for the business. If the lender believes that the accounts show income that is good enough to service their debt and the lifestyle of the applicants, they will then consider the applicants’ business plan and whether they are in a position to maintain or increase the profit from the business.

This is where transferable business skills come to the fore.

In your case, having demonstrable skills in banking, finance and business generally, a lender would be more than satisfied that you could be classed as a “reasonably efficient operator” and should be able to at least maintain business income at the current level.

You mentioned the unconverted barn with planning permission, giving site licence of 7. This should be mentioned in your business plan, because it is a potential source of additional income, which could well give a lender a degree of additional comfort.

If you would like to know more about the process, please call the office and speak to Mark, he will talk you through the next steps.

Category: Q&ATag: holiday let complex, holiday let finance, holiday letting businesses

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Get in touch with us and send some basic info about your project.

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CONTACT US

Holiday Let Mortgages

1st Floor, 140 Long Lane
BEXLEYHEATH
DA7 5AH

T 020 8301 7931
E mortgages@holidayletmortgages.co.uk

QUICK LINKS

Holiday let mortgage guide

Guide to UK holiday lets

Holiday let mortgage criteria

Holiday let articles

Holiday let tax

WE LIKE TO TALK

Please contact us whether you have found a property or project that needs financing or you are just in the early stages of forming a plan.

It’s often an advantage to discuss the financial side of a deal before everything has been agreed. So please call us on 020 8301 7931 and tell us your holiday let ideas.

Copyright © 2020 · Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Broker fees may apply. Written details on request. All loans subject to status. Think carefully before securing other debts against your home. The Financial Conduct Authority does not regulate holiday let mortgages. Holiday Let Mortgages is a trading style of Drake Mortgages Limited and this website is owned and operated by Drake Mortgages Limited who are authorised and regulated by the Financial Conduct Authority FCA Register No 207532 | Privacy | Terms