100% LTV mortgage for buying a hotel?

[Olsen347]

Hello everyone,

I was just wondering if there is a possibility to get a 100% LTV mortgage without any additional security except the hotel itself, the hotel is rented out to a hotel management company and they will run the hotel and pay a fixed rent every month, with a 25 year contract, so is the hotel bar, restaurant and the spa.

If this is possible, could anyone point me in the right direction?

Thank you
Best


Olsen347

 

[Mark T Jones]

No chance. Sorry

 

[OhhEnnEmm]

100% in this day and age? I seriously think not.

How are your finances? Can you get any money together to make a substantial deposit?

If you can get some funding together, I'd still massively recommend you speak to a mortgage specialist / solicitor - There's a lot of things to consider, especially with your plans by the sounds of it.

If you can't get a substantial deposit together, I'd probably just give up on the idea and save yourself time, effort and money!

You don't get anything for nothing these days!

Like I say, I don't wanna shoot down your idea, maybe it's a great business idea, but without the initial funds, it won't go anywhere sadly.

 

[Gordon - Commercial Finance]

Currently, no.

However financial markets have short memories so I'm sure it won't be long. Maybe 20 years.
In saying that just because its possible doesn't mean its a good idea.

 

[Financial-Modeller]

I was part of a team that bought a portfolio of managed hotels with 97% LTV.

That was in 2001.

The lender went bust in the financial crash of 2007/8.

Lenders today don't want to make the same mistakes and operate within a regulatory environment that won't allow them to make the same mistakes again.

OP, you will need to contribute a deposit &/or partner with a provider of Mezzanine Finance or similar who can.