Purchase of 4 Holiday Let cottages

Deal Structure

75% Loan To Value

10 year Interest Only

Interest @ 5.98% fixed for 5 years

£999 Arrangement Fee

Deal Summary

After a busy working life our clients were looking to retire and whilst they wanted to slow down, they didn’t want to give up work completely.

They had in the past stayed at a cottage in Scotland and when it came up for sale along with three others, they were keen to see if they could purchase them and operate them as Holiday Lets.

They had a pot of savings and were able to take a lump sum from their pensions but had little in the way of experience in the sector.

We contacted some lenders who specialise in Holiday Let mortgages and discussed the viability with them, and agreed on a broad approach which would see the clients prepare a Business Plan and financial projections.

We then presented the Business Plan along with supporting documents to the lender who could see that it was well thought out and because we had also sought the input from a holiday lettings firm to confirm the rental potential, they were comfortable with the projections.

The lender made a loan offer of £450,000 against a combined purchase price of £600,000 on an Interest Only basis for 10 years, which the clients were happy to accept.

Contact Simon Parkinson

07775 671 680

[email protected]