Where could I borrow £350k from to buy a B&B?!

[smnpukbmf]

A local B&B has come on the market. Always been the sort of thing I'd like to get in on.

I could sell my house to raise £350k but that still leaves me £350k short of the asking price.

Where would I go to see if I can borrow that sort of money? Happy for the loan to be against the property. I wouldn't be able to get a mortgage for that amount so guess would need to be some sort of business loan?

Never borrowed this sort of money before!

Any tips hugely appreciated.

 

[fisicx]

Sell the house and get a new mortgage.

But….

Question why they are selling the B&B. Is the business still viable? Would the income cover the cost of the mortgage?

And if you have never run a B&B before it becomes a very high risk business. Which is why getting a mortgage of any sort might fail at the first hurdle.

 

[Mark T Jones]

You'd potentially get a commercial mortgage against the business - up to 70% LTV

They'd take into account trading history (valuation on this type of business is heavily dependent on trading) and your relevant experience and plan

 

[WaveJumper]

Think it s been said above ..... what makes you think this business can repay the loan and give you a living have you had an accountant look over their books.

 

[ethical PR]

A local B&B has come on the market. Always been the sort of thing I'd like to get in on.

I could sell my house to raise £350k but that still leaves me £350k short of the asking price.

Where would I go to see if I can borrow that sort of money? Happy for the loan to be against the property. I wouldn't be able to get a mortgage for that amount so guess would need to be some sort of business loan?

Never borrowed this sort of money before!

Any tips hugely appreciated.

Have you seen their books? Why are they selling? What relevant experience do you have? Have you done any market research around likely demand for the rooms and charge out rates? Does it need any major renovation or improvements ?

 

[tony84]

How many lettable rooms are there?
In general you might need a commercial mortgage. But some residential mortgage lenders can be open to it. As an example, this is from a high street lender:

• Bed & Breakfast (no more than 2 bedrooms allocated to paying guests)

Probably best speaking to a broker though.

 

[DontAsk]

The OP hasn't been seen for 10 days.

They have 3 Ltd companies but do not seem to be getting advice from an accountant.

I fear this could end badly.

 

[smnpukbmf]

The OP hasn't been seen for 10 days.

They have 3 Ltd companies but do not seem to be getting advice from an accountant.

I fear this could end badly.

How rude. I thought this was supposed to be a supportive arena

 

[fisicx]

How rude. I thought this was supposed to be a supportive arena

It is supportive. But a lot of questions were asked that you haven't answered.

 

[smnpukbmf]

It is supportive. But a lot of questions were asked that you haven't answered.

That reply I quoted was not supportive. None of the questions were relevant in my opinion. I wasn't looking for general business advice - just an answer to a specific question.

You're welcome to close this thread now. The project did not go ahead and I've moved on. Thank you.

 

[Mark T Jones]

That reply I quoted was not supportive. None of the questions were relevant in my opinion. I wasn't looking for general business advice - just an answer to a specific question.

You're welcome to close this thread now. The project did not go ahead and I've moved on. Thank you.

Why did you only respond to the comment you didn't like, rather than the people who took time to offer thoughts & ideas?

Every single question was relevant - they are directly linked to how you would raise the funding.

Or do you mean they suggested work/thought on your part?

 

[ThatDevAaron]

lmao OP lowkey made you all mad asf

good job @smnpukbmf

 

[DontAsk]

That reply I quoted was not supportive.

That was me! It wasn't intended to be supportive but it certainly wasn't rude. I could not support you in what you are trying to in the way you are doing it. You seemed to admit in another thread that you did not have an accountant. If that wasn't you, why not just correct me? Ask for an apology, even? Up until now it would have been freely given.

I'll say it again. Not engaging an accountant could end badly.

 

[DontAsk]

lmao OP lowkey made you all mad asf

good job @smnpukbmf

In plain English please?