Mortgages for guest houses and B&Bs
Holiday Let Mortgages originated as a specialist in finance connected with holiday let properties and small holiday parks. We very quickly realised that the hospitality sector has much more to offer and that many of the specialist commercial holiday let lenders with whom we had developed strong relationships were already active in other areas of the hospitality market.
Guest Houses, Bed and Breakfast, small hotels or holiday let businesses are part of the same business niche known as “hospitality businesses”. Running a B&B, Guest House or Small Hotel requires different skills from that of, say, running a single holiday let property. B&B and Guest Houses are trading businesses and the running of them can’t generally be delegated to agents. It is more than likely that the income from the business will be your sole source of income so will need to be enough to cover the running expenses of the business as well as meet your personal financial commitments. Business acumen, although not necessarily in the hospitality industry, is, therefore, a prerequisite for running a successful hospitality business.
As a rough guide, mortgages to purchase or re-finance a B&B, small hotel or Guest House are available on the following basis:
- minimum loan amount £200,000
- up to 70% loan on a capital and interest basis and 60% interest only available.
- mortgages for start-ups or trading hospitality businesses available
- maximum mortgage term is 10 years interest only or up to 25 years on a capital repayment basis.
- leasehold properties acceptable, providing the lease does not preclude business use
- leasehold properties should have a minimum of 85 years unexpired remaining at the start of the mortgage term and 50 year remaining at the redemption date
- borrowers must be EU Nationals and resident in the UK
- mortgages available throughout the mainland UK
- traditional construction properties only
- mortgage loans available to Limited Companies* Individuals and partnerships. *Personal guarantees required for loans to Limited Companies
- mortgages for owner-managed hospitality businesses only
- “lifestyle change” applicants acceptable, without hospitality experience, however must have demonstrable transferable business skills
Please contact us to discuss your hospitality finance requirements or call 020 8301 7931